IAS 18 Revenue sets out when the sale of goods should be recognised. Given the conceptual framework of accounting, which of the following statements is false?

Question

Quizplus · Accepted Answer

Revenue recognition under IAS 18 is primarily based on the transfer of risks and rewards of ownership, not necessarily on the physical location of the goods. Therefore, revenue can be recognised even if goods remain on the seller's premises, provided the risks and rewards of ownership have been transferred to the buyer.

IAS 18 Revenue Sets Out When the Sale of Goods