Which of the following is not one of the conditions in AASB 118 when revenue from the sale of goods should be recognised?
A)the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold
B)it is probable that the economic benefits associated with the transaction will flow to the entity
C)it is possible that the economic benefits associated with the transaction will flow to the entity
D)the entity has transferred to the buyer the significant risks and rewards of ownership of the goods

Question

Quizplus · Accepted Answer

AASB 118 requires that revenue should only be recognised when it is probable that economic benefits associated with the transaction will flow to the entity. Therefore, option B is correct. Option A and D are also correct conditions. However, option C is not a condition stated in AASB 118 as it is not enough to identify possible benefits, but it has to be probable.

Which of the Following Is Not One of the Conditions