If the firm has received a promise of payment but cannot measure this promise with reasonable reliability,
A)U.S.GAAP would permit revenue to be recognized, but IFRS would not permit revenue to be recognized.
B)U.S.GAAP would not permit revenue to be recognized, but IFRS would permit revenue to be recognized.
C)neither U.S.GAAP nor IFRS would permit revenue to be recognized.
D)U.S.GAAP and IFRS would permit revenue to be recognized.
E)none of the above

Question

Quizplus · Accepted Answer

Both US GAAP and IFRS require that revenue can only be recognized when it is measurable with reasonable reliability. If the firm cannot reliably measure the promise of payment, then neither US GAAP nor IFRS would permit revenue to be recognized.

If the Firm Has Received a Promise of Payment but Cannot