When following ASPE,all of the following criteria must be satisfied in order to recognize revenue for the sales of goods under the earnings based approach,except A)the service has been performed. B)the risks and rewards have been transferred to the customer. C)the seller has no continuing involvement. D)collection is reasonably assured.

Question

Quizplus · Accepted Answer

When recognizing revenue for the sales of goods under the earnings based approach, the service does not have to be performed because this criterion applies to the performance obligation approach. The other criteria that must be satisfied are the risks and rewards have been transferred to the customer, the seller has no continuing involvement, and collection is reasonably assured.

When Following ASPE,all of the Following Criteria Must Be Satisfied