M03 - Revenues / Government Grants

Question 1

NRV is identified as

Answer 1

Net amount that an entity expects to realize from the sale of inventory in the ordinary course of business
ASPE 3031.08

Question 2

How is inventory measured per ASPE?

Answer 2

Lower of cost and net realizable value (NRV)
ASPE 3031

Question 3

What are the 5 steps for revenue recognition?

Answer 3

1. Identify the contract with the customer
2. Identify the performance obligations (PO)
3. Determine the transaction price
4. Allocate the transaction price to PO
   5 recognize revenue when PO satisfied

Question 4

Under IFRS when is revenue recognized?

Answer 4

Revenue is recognized when transfer of control occurs

Question 5

Under ASPE when is revenue recognized?

Answer 5

RCMP:
Performance
Transfers of risks and rewards
Collection (collectibility)
Measurement

Question 6

What is PO (performance obligation) called in ASPE?

Answer 6

Multiple deliverables or units of account

Question 7

What’s the criteria for a liability under ASPE?

Answer 7

1. Duty or responsibility to transfer assets on occurace of aq specified event
2. Entity has little or no discretion to avoid
3. Transaction or event has already occurred