Under IFRS, revenue for a product sale should occur when:
A) Inventory production is complete.
B) Warranty fulfillment is viewed as unlikely.
C) The seller has transferred to the buyer the risks and rewards of ownership and doesn't effectively manage or control the goods.
D) The buyer has paid a preponderance of installment amounts due.

Question

Quizplus · Accepted Answer

According to IFRS, revenue for a product sale should occur when the seller has transferred to the buyer the risks and rewards of ownership and doesn't effectively manage or control the goods. This is known as the point of transfer, and it typically occurs when the goods are delivered to the buyer. The transfer of risks and rewards is a key indicator that control of the goods has passed to the buyer, and therefore revenue should be recognized. The other options listed do not accurately reflect the point at which revenue should be recognized under IFRS.

Under IFRS, Revenue for a Product Sale Should Occur When