The once-revised exposure draft on revenue recognition issued by the IASB and the FASB
A)addresses when and how much revenue should be recognized in contracts to provide both goods and services to customers.
B)proposes to eliminate alternate methods of revenue recognition such as the percentage-of-completion and installment sales methods.
C)will require companies to recognize a net liability contract position on all new contracts;revenue will then arise from increases in the net contract position over the life of the contract.
D)All of these are correct regarding the FASB/IASB exposure document.

Question

Quizplus · Accepted Answer

The exposure draft on revenue recognition focuses on the principles for recognizing revenue from contracts with customers, covering both goods and services, but does not propose to eliminate all alternate methods nor does it mandate recognizing a net liability contract position on all new contracts.

The Once-Revised Exposure Draft on Revenue Recognition Issued by the IASB