A flower shop makes a large sale for $1,000 on November 30.The customer is sent a statement on December 5 and a check is received on December 10.The flower shop follows IFRS and applies the revenue recognition principle.When is the $1,000 considered to be earned?

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Quizplus · Accepted Answer

According to the revenue recognition principle under IFRS, revenue is recognized when it is earned and realizable, which is when the sale is made and the goods or services are delivered. In this case, the sale was made on November 30, so the revenue is recognized on that date.

A Flower Shop Makes a Large Sale for $1,000 on November