MFRS 15: Revenue

1. Factors that indicate an entity’s to transfer good/service to the customer is separately identifiable EXCEPT:

• Does not provide a significant service

• G/S not lowly dependent on or highly interrelated

• G/S does not significantly modify or customize another G/S

• G/S not highly dependent on or highly interrelated

2. The entity has transferred physical possession of asset is 1 of the Indicators of transfer of control to be recognized at a point in time.

• True

• False

3. A contract with customer is wholly unperformed if…..

• the entity can not identify the payment terms for the goods or services to be transferred

• the entity can not identify for each party’s rights in relation to the goods or services to be transferred

• the entity is not yet entitled to collect any consideration in exchange for promised goods or services

• All of the above

4. A good or service that is promised to customer is distinct if…..

• the customer can benefit from the good or service on its own

• the customer can benefit from the good or service together with other resources that are readily available to the customer

• the entity’s promise to transfer the good or service to the customer separately identifiable from other promises in the contract

• All of the above

5. Income is increase in economic benefits during accounting period in the form of

• Increase in assets and increase in liabilities

• Increase in assets and decrease in liabilities

The 5 steps that need to be followed in revenue recognition:

1. Identify the contract.

2. Identify the performance obligations.

3. Determine the transaction price.

4. Allocate the transaction price.

5. Recognise revenue when a performance obligation is satisfied.

True or false ?

• True

• False

7. A performance obligation is a promise in a contract with a customer to transfer good/services to the customer.

• True

• False

8. Lisa enters into a 12-month telecommunication plan with a local mobile operator as I-Mobile. Upon the inception of the plan, she will receive a free phone. How many performance obligations in this situation?

• 3

• 2

• 6

• 1

9. When determining transaction price, entity shall consider past customary business practices and the effects of all the following, except:

• Non-cash consideration

• Variable consideration

• Consideration to transfer the physical obsession of the asset

• Consideration payable to a customer

10. Output method recognizes revenue on the basis of the value to the customer of the goods or services transferred

• True

• False