The first step in the revenue recognition process under IFRS is
A) determine the transaction price.
B) identify the separate performance obligations of the contract.
C) identify the contract with customers.
D) allocate the transaction price to the separate performance obligations.

Question

Quizplus · Accepted Answer

The first step in the revenue recognition process under IFRS is to identify the contract with customers. This involves determining whether a contract exists, identifying the parties to the contract, identifying the terms of the contract, and determining whether the contract is enforceable. Only after a contract has been identified can the other steps in the revenue recognition process be undertaken.

The First Step in the Revenue Recognition Process Under IFRS