What method(s) is(are) required by IFRS when accounting for long-term contracts?
A) Percentage-of-completion or cost recovery methods
B) Only cost-recovery
C) Only percentage-of-completion
D) Percentage-of-completion or completed contract methods

Question

Quizplus · Accepted Answer

IFRS does not allow the completed contract method. Instead, companies must use the cost-recovery method if they have contracts for which the percentage-of-completion method is unsuitable.

What Method(s) Is(are) Required by IFRS When Accounting for Long-Term