Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Which of the following is not a condition to be satisfied when recognising revenue from the sale of goods or services? Select one: a
Which of the following is not a condition to be satisfied when recognising revenue from the sale of goods or services? Select one: a. Reliable measurement of the transaction costs. O b. The probability of future economic benefits flowing to the seller. O c. The seller retains control over the goods. O d. Transfer of the significant risks and rewards of ownership of the goods from the seller to the buyer.
Expert Solution
Sol: c. The seller retains control over the goods.
According to IAS 18, revenue is recognised when following conditions have been satisfied (in case of
sale of goods):
a. The seller has transferred the significant risks and rewards of ownership of the goods to the buyer.
b. The seller does not retain control over the goods or managerial involvement with them to the degree usually associated with ownership.
c. The amount of revenue can be measured reliably.
d. It is probable that the economic benefits associated with the transaction will flow to the seller.
e. The costs incurred or to be incurred by the seller in respect of the transaction can be measured reliably.
In short, if the seller retains control over the goods revenue can't be recognised as per Indian
Accounting standard 18.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
