Recognition Criteria

Question 1

Revenue (IFRS)

Answer 1

1. Identify the contract
2. Identify the performance obligation
3. Determine the transaction price
4. Allocate the contract price
5. Recognize when performance is achieved

Question 2

Revenue (ASPE)

Answer 2

1. Collection is reasonably assured
2. A reliable estimate can be made
3. Performance has been achieved

Question 3

Gains

Answer 3

1. There is an appropriate measurement basis

2. The items to be given up or received are probable to be given up or received

Question 4

PPE (IFRS and ASPE)

Answer 4

1. It is probable that future economic benefits will flow to the entity
2. The cost can be reliably measured

Question 5

Intangible Assets (IFRS and ASPE)

Answer 5

1. It is probable that future economic benefits will flow to the entity
2. The cost can be reliably measured

Question 6

Impairment (IFRS and ASPE)

Answer 6

When the carrying amount exceeds the recoverable amount

Question 7

Provisions (IFRS)

Answer 7

1. There is a present obligation as a result of past events
2. It is probable there will be an outflow of economic resources
3. A reliable estimate can be made

Question 8

Contingencies (ASPE)

Answer 8

1. It is likely there will be an outflow of economic resources
2. A reliable estimate can be made

Question 9

Asset (IFRS and ASPE)

Answer 9

1. There is a future benefit
2. The entity controls the future benefit
3. It is a result of past events

Question 10

Liability (ASPE)

Answer 10

1. There is an obligation that will result in an outflow of economic resources
2. There is no discretion to avoid it
3. The obligating event has already occured

Question 11

Liability (IFRS)

Answer 11

1. There is a present obligation
2. It arose from past events
3. It is expected to result in an outflow of economic resources

Question 12

Grants (for profit)

Answer 12

1. The requirements in the agreement will be fulfilled

2. Collection is reasonably assured

Question 13

NPO - Donated goods / services

Answer 13

1. The FV can be reliably estimated

2. The goods/services would have been acquired in the normal course of operations if not donated

Question 14

Biological asset or agricultural produce

Answer 14

1. the entity controls the asset as a result of past events
2. it is probable economic benefits will flow to the entity
3. the FV or cost of the asset can be measured reliably

Question 15

Investment Property

Answer 15

1. It is probable the future economic benefits will flow to the entity
2. the cost of the property can be reliably measured

Question 16

Assets Held for Sale

Answer 16

1. Management has a plan to sell the assets
2. The plan to sell is unlikely to change
3. The terms of the sale are ordinary
4. The assets are available for immediate sale
5. The entity is actively looking for a buyer
6. The assets are actively marketed
7. Shareholder approval is probable
8. The assets are expected to be sold within a year

Question 17

Discontinued Operations

Answer 17

The discontinued operations were sold out are classified as held for sale

Question 18

Financial Instruments

Answer 18

When the entity becomes a party to the contractual provisions of the instrument