Which methods do IFRS and U.S.GAAP typically record service revenue,respectively?
A)Percentage-of-completion method,completed-contract method
B)Relying on specific industry guidance,completed-contract method
C)Percentage-of-completion method,relying on specific industry guidance
D)Completed-contract method,percentage-of-completion method

Question

Quizplus · Accepted Answer

Both IFRS and U.S. GAAP allow the use of the percentage-of-completion method to recognize service revenue. Additionally, U.S. GAAP provides specific industry guidance in certain situations. Therefore, the best choice is C, which includes both the percentage-of-completion method and relying on specific industry guidance. Option A and D, which include either percentage-of-completion or completed-contract method exclusively, are not complete or accurate. Option B is incorrect since it only mentions specific industry guidance without mentioning a specific revenue recognition method.

Which Methods Do IFRS and U