Financial Reporting and Analysis Q83

0. The core principle of the converged revenue recognition standard (issued by IASB and FASB) is that revenue should be recognized to “depict the transfer of promised goods or services to customers in an amount that reflects:

A
the consideration that the entity has actually received in an exchange for those goods or services.”
B
the consideration to which the entity expects to be entitled in an exchange for those goods or services.”
C
the costs that the entity has incurred to produce those goods or services.”

Answer
Comment
Array

Option : B
Explanation : The core principle of the converged standard is that revenue should be recognized to “depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in an exchange for those goods or services.”

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