REVENUE RECOGNITION

Question 1

Revenue Recognition ASPE Criteria?

Answer 1

ASPE 3400

Question 2

List three steps of the criteria under ASPE?

Answer 2

1.Performance has been achieved
2.Revenue can be measured reliably.
3.Collection is reasonably assured

Question 3

Under ASPE,Rev rec criteria step1 list the subcategories?

Answer 3

1.Evidence of arrangement exists
2. Delivery
3.Price is fixed or determinable

Question 4

FOB Shipping means?

Answer 4

Title transfer when goods leave sellers warehouse

Question 5

FOB Destination meaning?

Answer 5

Title transfer when goods arrive at customer location

Question 6

Under ASPE, Performance can be determined using which methods?

Answer 6

1.Percentage of completion method (more than one act) Revenue recognition over time
2. Completed contract (Single act) Revenue is recognized on completion

Question 7

ASPE - REVENUE DISCLOSURE?

Answer 7

Revenue recognition policies are disclosed for each type of revenue transaction, generally in
the accounting policies section of the note disclosure.