When accounting for sales where the risk of non-collection of installments is high or when there is no reasonable basis for estimating uncollectible accounts,IFRS
A)requires use of the installment sales method.
B)permits either the cost recovery or the installment sales method.
C)takes a more conservative approach than that allowed under U.S.GAAP.
D)takes a less conservative approach than that allowed under U.S.GAAP.

Question

Quizplus · Accepted Answer

IFRS generally takes a more conservative approach than U.S. GAAP in situations where there is a high risk of non-collection or when it is difficult to estimate uncollectible accounts. This conservative stance is reflected in the requirement for recognizing revenue in a manner that may delay revenue recognition until the uncertainty regarding collection is resolved.

When Accounting for Sales Where the Risk of Non-Collection of Installments