Legally enforceable contracts can be written, oral, or implied by the entity's customary business practices. Which of the following does a contract need to meet in order to comply with IFRS 15?
A) The contract has commercial substance.
B) The parties have approved the contract and are committed to perform their respective obligations.
C) The entity can identify each party's rights regarding the goods or services to be transferred.
D) The entity can identify the payment terms for the goods or services to be transferred.
E) All of the above.

Question

Quizplus · Accepted Answer

IFRS 15 requires that a contract must have commercial substance, be approved with a commitment to perform obligations by the parties involved, allow for the identification of each party's rights regarding the goods or services, and specify the payment terms for those goods or services. Therefore, all the listed criteria (A, B, C, D) are necessary for a contract to comply with IFRS 15.

Legally Enforceable Contracts Can Be Written, Oral, or Implied by the Entity's