CFE: Financial Reporting Flashcards
Which ASPE section is revenue recognition?
3400
ASPE - When can revenue be recognized?
Performance is achieved &
Collection is reasonably assured
ASPE - When is ‘Performance is achieved’?
- All significant acts completed or
No continuing involvement in or control of goods.(Transferred risks and rewards of ownership ) - Reasonable assurance regarding measurement & amount of returns
ASPE - What is reasonable assurance regarding measurement of revenue?
Price is fixed and determinable.
ASPE - When is there no continuing control of goods?
When delivery has occurred.
ASPE - What are significant acts in achieving performance?
Persuasive Evidence Exists
Delivery has Occurred
Which IFRS standard is revenue recognition?
IAS 18
ASPE - How is revenue recognized in a long term contract?
Percentage of Completion (if possible) otherwise
Completed Contract
ASPE - When is percentage of completion not used?
- performance based on single act
- progress cannot be measured
- consideration is not measurable
IAS 18 - What is not available as a method of revenue recognition?
Completed Contract Method
ASPE - When is performance NOT achieved?
- Customer Acceptance Provisions
- Layaway sales
- Upfront fees
- Bill & Hold arrangements
- unpredictable or unusual rights of return
ASPE - How is the revenue for ‘multiple deliverables’ recognized?
- Individually, based on relative fair values.
ASPE - Which section is Goodwill and Intangible assets?
3064
ASPE - Intangibles & Goodwill meet the following criteria:
- Identified separately
- Able to Control
- Provides future economic benefit
ASPE - Indentified separately means:
- separated from entity and sold, licensed, rented
- arises from contractual or legal rights
