IAS 18 - Revenue recognition

Question 1

IAS 18

Answer 1

Revenue measurement

Question 2

Revenue measurement

Answer 2

1. Fair value
2. Present value if deferred
3. Barter transaction: fair value of goods receieved (if unreliable of goods given up)

Question 3

Criteria for Revenue Recognition of goods

Answer 3

1. Risks and rewards of transaction to buyer
2. No retained involvement/control over the goods
3. Measured reliably
4. Costs incurred can be measured reliably
5. Probable economic benefit will flow

Question 4

Criteria for Revenue Recognition of Services

Answer 4

1. Measured reliable
2. Probable economic benefit will flow
3. The costs to complete the transaction can be measured reliably
4. The stage of completion can be measured reliably at the end of the reporting period

Question 5

How should revenue from interest be recognised?

Answer 5

Time proportion basis reflecting the effective interest methode on the asset

Question 6

How should revenue from Royalties be recognised?

Answer 6

Accruals basis

Question 7

How should the revenue in form of dividends be recognised?

Answer 7

Right to receive payment is established