An entity shall recognise revenue from a contract when:
A) the entity has satisfied the performance obligation.
B) the goods or service have been transferred to the customer.
C) the customer obtains control of the goods or service.
D) All of the given answers are necessary for recognition of revenue from a contract.

Question

Quizplus · Accepted Answer

All of the given answers are necessary for recognition of revenue from a contract. Recognition of revenue depends on the satisfaction of the performance obligation, transfer of goods or services to the customer and control of goods or services obtained by the customer. Therefore, all the options are necessary for the recognition of revenue from a contract.

An Entity Shall Recognise Revenue from a Contract When