IASB (2011)requires an entity to recognise revenue for a performance obligation satisfied over time only if the entity can:
A) reasonably measure with complete satisfaction the performance obligation.
B) reasonably measure its expected revenue of the performance obligation.
C) reasonably measure its expected costs of the performance obligation.
D) reasonably measure its progress towards complete satisfaction of the performance obligation.

Question

Quizplus · Accepted Answer

According to IASB (2011), an entity can recognize revenue for a performance obligation satisfied over time only if it can reasonably measure its progress towards complete satisfaction of the performance obligation. This means that the entity must have a reliable method of measuring the degree of completion of the performance obligation, which can be based on inputs such as costs incurred, time elapsed, or units delivered. This requirement ensures that revenue is recognized in a way that accurately reflects the entity's performance over time, rather than simply recognizing revenue based on estimates of expected revenue or costs.

IASB (2011)requires an Entity to Recognise Revenue for a Performance