Which of the following is NOT a criteria for recognition of revenue from the sale of goods under IAS 18 Revenue?
A) The seller has transferred the significant risks and rewards of ownership to the buyer.
B) The costs incurred, or to be incurred, in respect of the transaction can be measured reliably.
C) The stage of completion at the statement of financial position date can be measured reliably.
D) The amount of revenue can be measured reliably.

Question

Quizplus · Accepted Answer

While the stage of completion can be a factor for recognition of revenue for services, under IAS 18 Revenue, it is not a criteria for the recognition of revenue from the sale of goods. The other options - transfer of significant risks and rewards of ownership, reliable measurement of costs, and reliable measurement of revenue - are criteria for recognition of revenue from the sale of goods.

Which of the Following Is NOT a Criteria for Recognition