QUESTION 10 On 1 January 2018, a vendor enters into a contract with a customer to build an item of specialized equipment, for delivery on 31 March 2018. The amount of consideration specified in the contract is $ 2 million, but that amount will be increased or decreased by $ 10,000 for each day that the actual delivery date is either before or after 31 March 2018. What is the revenue recognition as per IFRS 15?

ANSWER 10

In determining the transaction price, the vendor considers the approach that will better predict the amount of consideration that it will ultimately be entitled to, and determines that the expected value method is the appropriate approach. 

This is because there is a range of possible outcomes


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