Under IAS 18, which of the following is NOT a condition that must be met in order for revenue from the sale of goods to be recognized?
A)The significant risks and rewards of ownership of the goods have been transferred to the buyer.
B)There must be a binding, written contract between the seller and the buyer.
C)The amount of revenue can be measured reliably.
D)Neither continued managerial involvement normally associated with ownership nor effective control of the goods is retained.

Question

Quizplus · Accepted Answer

While a written contract is often necessary to help establish that a sale has taken place, it is not a specific condition listed under IAS 18 that must be met for revenue recognition. The other options listed (transfer of risks and rewards of ownership, reliable measurement of revenue, and lack of continued managerial involvement or effective control) are all required for revenue recognition under IAS 18.

Under IAS 18, Which of the Following Is NOT a Condition