Under ASPE,when revenue is earned from the sale of goods under the earnings based approach,all of the following criteria must be met before revenue can be recognized except
A)the amount of consideration received can be measured with reasonable assurance.
B)collection is reasonably assured.
C)all sales returns and allowances have been recorded.
D)risks and rewards of ownership have been transferred to the customer.

Question

Quizplus · Accepted Answer

Under the earnings based approach, revenue can be recognized when all of the following criteria are met: the amount of consideration received can be measured with reasonable assurance, collection is reasonably assured, risks and rewards of ownership have been transferred to the customer. The recording of sales returns and allowances is relevant for determining the net amount of revenue to be recognized, but it is not a criterion for recognizing revenue.

Under ASPE,when Revenue Is Earned from the Sale of Goods