For an SME, revenue shall arise on all of the following transactions and events except a. Sale of goods or rendering of services. b. Construction contracts in which the entity is the contractor. c. Use by others of entity assets yielding interest, royalties or dividends. d. Revenue shall arise in any of these transactions.

Q: Entity A issues an instrument that is re-purchasable by delivering cash or another financial asset.…

A: Answer (4). Option A is the correct answer.

Q: - Statement 1: An entity shall capitalize borrowing costs that are indirectly attributable to the…

A: As per the accounting standards, borrowing costs such as interest etc are to be capitalized if they…

Q: When recognizing revenue, a company has satisfied its performance obligation when the company has O…

A: The concept of Revenue recognition applies to both goods and services.

Q: re emission allowances (EAs)? How do businesses obtain them?   b) Explain how EAs held by an…

A: Pollution: It is the introduction of bad particles into the natural environment. It is the unhealthy…

Q: PRO Which of the 1. Financial assets in the form of investments in subsidiaries, associates and…

A: PAS 32 covers Contracts for delivery or receipt of commodity and other non financial assets that can…

Q: All changes in an entity's exonomic resources and claims to those resources result frim the entity's…

A: Changes in economic resources and claims: Changes in a reporting entity's economic resources and…

Q: Under IFRS, when an entity chooses the revaluation model as its accounting policy for measuring…

A:

Q: Which one of the following statement about encumbrance is correct? a. Encumbrances are equivalent to…

A: Encumbrances denote the estimated expenditures before the actual expenditure is occurred. It…

Q: Which of the following would not explain the difference between current and non-current assets?…

A: What are currents assets and non current assets let us understand that first.  Current assets are…

Q: 1. Should the two contracts be combined for purposes of applying the five-step revenue recognition…

A:

Q: Statement 1: An entity shall disclose the period of construction in which borrowing costs are…

A: borrowing cost include financial charges like interest on loan and overdraft. the capitalisation of…

Q: What principle(s) from the conceptual framework does Henday Limited use in each of the following…

A: Conceptual framework is a concept with several variations and contexts.It basically helps you to…

Q: The firm recognizes an expense when the following condition(s) hold(s):   Select one: A. The…

A: Introduction:- Generally expenses should be recognized in the same period as the revenues relating…

Q: When assets are exchanged in a transaction involving commercial substance, how is the gain or loss…

A: Below is the computation and accounting treatment for gains or losses on assets exchanged in a…

Q: rder for an asset to be recognized in the financial statements, which of the following definition is…

A: The IASB ( International Accounting Standard  Board) have the responsibility of  developing IFRS ,…

Q: The following expenditures shall be expensed when incurred, except * Payment in advance of delivery…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: To be reported as “cash and cash equivalent”, the cash and cash equivalent must be  a. Unrestricted…

A: The term cash and cash equivalents consist of two terms Cash which means cash in hand and demand…

Q: Appropriations of retained earnings are proper     a. When required by contractual agreements b. All…

A: solution Appropriations of retained earnings are proper Correct answer is option c. When BOD…

Q: Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when: I. The…

A: Financial Assets shall be subsequently measured at amortized cost, when The Business Model is to…

Q: A. For some assets, straight-line depreciation is used for tax purposes while double-declining…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when *…

A: Borrowing costs are costs that are incurred for borrowing money for the purpose of acquisition,…

Q: 19 - What is the monetary expression of the rights of third parties lending to the enterprise over…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Revenue should be recognized at a single point in time when control of a good or service is…

A: Given statement is: Revenue should be recognized at a single point in time when control of a good or…

Q: What is the principle for recognition of a financial asset in PFRS 9? A. A financial asset is…

A: Financial asset is a form or type of assets under which rights are obtained to receive future…

Q: When a company is the recipient of a donated asset, the account credited may be a A) revenue…

A: Rules of Debit and Credit:Following rules are followed for debiting and crediting different accounts…

Q: How should the assets and liabilities of a disposal group held for sale be reported? A. The assets…

A: A disposal group is a group of assets and liabilities that are proposed to be sold off or discarded…

Q: Identify the term being referred to: An agreement where one party conveys to the another party the…

A: The question contains an agreement between two parties . One party coveys the right to use the asset…

Q: (a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for…

A: As per IAS-16( Property, Plant and Equipment ) When entity Acquires any Property, Plant and…

Q: The entry to record transaction costs for financial assets measured at fair value through surplus or…

A: The correct answer for the above mentioned question is given in the following steps.

Q: Which of the following shall be excluded in the contract costs of a construction contract? * A.…

A: Contract costs should comprise:(a) costs that relate directly to the specific contract;(b) costs…

Q: When a revenue arrangement involves more than one performance obligation, which of the following…

A: Solution: When a revenue recognition involves more than one performance obligation "Whether each…

Q: allocated to the award credits when it fulfils its obligations in respect of the awards. a. All…

A: Correct option is c i.e 2nd statement is incorrect while the 1st statement is correct   Explanation:

Q: Which of the following factors, if present, would indicate that a transaction is not a contribution?…

A:

Q: 4. If the nature of an entity's promise to transfer a license is a "right to use," revenue shall be…

A:

Q: When is revenue recognized in the following situations?(a) Revenue from selling products, (b)…

A:

Q: An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when O…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: 8. Income is: a. An amount for payment of services, interest, or profit from investment b. The…

A: Income is the excess of revenue over expenditures.

Q: In depreciating the cost of an asset, accountants are most concerned witha. Conservatism.b.…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial  asset can  be measured  at Fair value  through  profit or loss

Q: Exploration and evaluation assets are initially measured at  a. cost. b. revalued amount. c. fair…

A: Evaluation and Exploration Asset-: Some Exploration and Evaluation Assets are dealt with as…

Q: I. The amount of borrowing costs that an entity capitalizes during a value, the carrying amount is…

A: As per IND AS 23, borrowing cost eligible for capitalization= Borrowing cost incurred- investment…

Q: The cash basis and accrual basis of accounting in the public sector in terms of A. Recognition of…

A: SOLUTION- CASH BASIS OF ACCOUNTING REFERRED TO THAT METHOD OF ACCOUNTING WHERE THE ACCOUNTING SYSTEM…

Q: According to PAS 23, borrowing costs are capitalized when *   A. They relate directly to the…

A: As per PAS 23, borrowing costs are the interest costs and other costs that are incurred in relation…

Q: A. an agreement between a private sector entity and a contractor for the supply of goods or services…

A: Contractor  A contractor can be an individual or a company that will undertake to do specific work…