IFRS 15

Which of the following is an exception for application of IFRS 15? (i)Lease contracts; (ii)Insurance contracts; (iii)Pharmaceutical contracts ; (iv)Financial audit contracts

• A. (i) & (iv)

• B. (i)& (iii)

• C. (iii) & (iv)

• D. (i)& (ii)

A contract is wholly unperformed if…

• A. The entity has not yet transferred any promised goods or services to the customer

• B. The entity has not yet received any consideration in exchange for promised goods or services

• C. The entity is not yet entitled to receive any consideration in exchange for promised goods or services

• D. All of the above

A good or service that is promised to a customer is distinct (PO) if…

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

• B. The customer can benefit from the good or service together with other resources(assets) that are readily available to the customer

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

• D. All of the above

According to IFRS 15, the asset is transferred to a customer…

• A. When the asset is physically delivered to the customer’s premises

• B. On the day specified by a contract with the customer

• C. When the customer obtains control over it

• D. On the day when the entity satisfies all performance obligations, specified in the contract with the customer

How shall we account for a contract modification that decreases the scope of the services provided?

• A. As for the separate contract because the decrease in scope IS distinct.

• B. As for the part of existing contract with “catch-up adjustment”, because the decrease in scope is NOT distinct.

• C. As for the termination of old contract and creation of new contract.

• D. As for the separate contract if the price for added services reflects their stand-alone price

What is the contract modification?

• A. It is accounting for 2 or more contracts as for the single contract

• B. It is a change in the scope or price (or both) of a contract.

• C. It is the change in the contract resulting from deteriorating the customer’s credit risk

• D. It is the change in the payment terms of a contract.

What is the definition of the contract under IFRS 15?

• A. Agreement between two or more parties with defined rights and payment terms.

• B. Agreement between two or more parties that creates enforceable rights and obligations.

• C. Written or oral agreement between two or more parties to provide goods or services

• D. Arrangement between two or more parties to provide goods or services.

What is the effective date of the standard IFRS 15 Revenue from Contracts with Customers?

• A. 1 January 2017

• B. 1 January 2018

• C. 1 January 2019

• D. 1 July 2018

Which of the following are among of the five steps for recognising revenue according to IFRS 15 Revenue from Contracts with Customers? (i). Recognise revenue when (or as) the entity satisfies a performance obligation (ii). Ascertain whether control over the goods has passed or not (iii). Determine the transaction price (iv). Identify standalone selling price

• A. all of above

• B. i, ii, and iii

• C. i, iii, and iv

• D. i, and iii

Which of the following items are NOT part of the five-steps model for revenue recognition in accordance with IFRS 15 Revenue from Contracts with Customers? (i). Allocate the total price between the separate performance obligations in the contract (ii). All contracts must be in writing (iii). Recognise revenue when a performance obligation is satisfied (iv). Identify the contract

• A. i, and ii

• B. i, ii, and iv

• C. ii

• D. ii, and iii