The appropriate approach to recognize long-term contract revenue under ASPE is
A) earnings approach to revenue recognition.
B) asset-liability approach to revenue recognition.
C) cash-based approach to revenue recognition.
D) earned and realized approach to revenue recognition.

Question

Quizplus · Accepted Answer

The earnings approach to revenue recognition is appropriate under Accounting Standards for Private Enterprises (ASPE) for recognizing long-term contract revenue, as it focuses on the stage of completion or the work performed, allowing revenue to be recognized as the work progresses.

The Appropriate Approach to Recognize Long-Term Contract Revenue Under ASPE