When a performance obligation is satisfied,an entity shall recognise revenue:
A) in full if it is an immaterial amount.
B) when the asset is transferred and the customer gains control of the asset.
C) when the entity retains control.
D) when the risks and rewards are transferred to the customer.

Question

Quizplus · Accepted Answer

According to the revenue recognition principle in IFRS 15, revenue shall be recognized when a customer obtains control of a good or service. This typically occurs when the asset is transferred to the customer. Therefore, option B is the correct choice. Options A, C, and D are incorrect as they do not align with the principle of revenue recognition in IFRS 15.

When a Performance Obligation Is Satisfied,an Entity Shall Recognise Revenue