Under AASB 15 Revenue from Contracts with Customers, a service entity will recognise revenue:
A) at the time the service is performed.
B) when the entity collects cash from the customer for services provided.
C) if both parties agree the services will be performed over a period of time, at the completion of the service contract.
D) if both parties agree the services will be performed over a period of time, at the commencement of the service contract.

Question

Quizplus · Accepted Answer

AASB 15 Revenue from Contracts with Customers is a new standard for revenue recognition which became mandatory for reporting periods from 1 January 2017. This standard prescribes five steps for the recognition of revenue. For a service entity, revenue is recognised at the time the service is performed.

Under AASB 15 Revenue from Contracts with Customers, a Service