When following ASPE,all of the following criteria must be satisfied in order to recognize revenue for the provision of services,under the earnings based approach,except A)the service has been performed. B)the amount of consideration to be received can be measured with reasonably assurance. C)the seller has no continuing involvement. D)collection is reasonably assured.

Question

Quizplus · Accepted Answer

The criteria for recognizing revenue for the provision of services under the earnings based approach, according to ASPE, includes: the service has been performed, the amount of consideration to be received can be measured with reasonable assurance, and collection is reasonably assured. There is no mention in ASPE that the seller must have no continuing involvement in order to recognize revenue for the provision of services, therefore option C is the correct answer.

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