Chapter 10, Problem 5BIC

The following certain attributes present into a contract to determine whether the arrangements with customer are contracts within the scope of IFRS 15:I. The parties have approved the contract and are committed to perform their respective obligations.II. Each party’s rights regarding the goods or services to be transferred can be identified.III. Payment terms can be identified.IV. The contract has commercial substance.V. It is probable that the entity will collect the consideration to which it will be entitled in exchange for goods or services that will be transferred to the customer. I only I, II, and IV only All of the above I, II, IV, and V only

Under PFRS 15, which of the following factors indicates that the revenue from contracts with customers is recognized from the moment the entity satisfies the performance obligation at a point in time?   When the entity has transferred physical possession of the asset to the customer. When the customer simultaneously receives and consumes all the benefits provided by the entity as the entity performs. When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. When the entity’s performance creates or enhances an asset that the customer controls as the asset is created.

Fair Value Measurement Concept Question: What does it mean when fair value is paid to transfer a liability in an orderly transaction between market participants at the measurement date? Please explain or give an example for understanding.

Describe a current or historical M&A deal that faced regulatory scrutiny. Discuss how the deal terms allocated the risk and the actions taken to alleviate the concerns (or why the deal did failed because of the regulations).

Why do somew companies report "Non-GAAP" measures?

Under PFRS 15, when shall a consignor recognize revenue from its consignment sales?   When it is probable that future economic benefits will flow to the consignor and the fair value of the revenue can be measured reliably. When the consignor receives cash remittance from the consignee. When the consignor satisfies its performance obligation under consignment contract. When the consignor enters into a consignment contract with a consignee.

Which one of the following situation where a performance obligation is satisfied over time ?  a-  The entity's performance creates an asset that the customer controls as it is created b- The customer does not receive or consume the benefits provided by the entity's performance until the obligation is completely satisfied c- The entity does not have an enforceable right to payment for the performance that has been completed to date d- The entity's performance creates an asset which has an alternative use to the entity

Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable

Which of the following represents an obligation of the company? Liability Asset Owners' Equity Liabilities of its competitors