When using the IFRS zero-gross-profit approach, ________.
A) expenses in excess of revenues are recorded each year
B) an equal amount of revenue and expense is recorded each year
C) neither revenue nor expenses are reported
D) expenses are recorded each year

Question

Quizplus · Accepted Answer

The IFRS zero-gross-profit approach involves recognizing an equal amount of revenue and expense each year, resulting in no gross profit being reported until the contract is completed.

When Using the IFRS Zero-Gross-Profit Approach, ________