The new revenue recognition standard excludes coverage of all the following except
A) leases.
B) long-term construction contracts.
C) insurance contracts.
D) financial instruments.

Question

Quizplus · Accepted Answer

The new revenue recognition standard, as outlined in IFRS 15 and ASC 606, applies to all contracts with customers except for those that fall within the scope of other standards such as leases (IFRS 16 and ASC 842), insurance contracts (IFRS 17), and financial instruments (IFRS 9 and ASC 320, 321, 325, 326). Long-term construction contracts are covered by the new revenue recognition standard, as they are considered contracts with customers for the provision of services.

The New Revenue Recognition Standard Excludes Coverage of All the Following