Sahara Desert Homes (SDH) reports under IFRS and constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below: SDH uses the cost recovery method under IFRS to recognize revenue.
- What is the journal entry in 2017 to record revenue?

Question

Sahara Desert Homes (SDH) reports under IFRS and constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:  SDH uses the cost recovery method under IFRS to recognize revenue.
- What is the journal entry in 2017 to record revenue?

Quizplus · Accepted Answer

Under the IFRS cost recovery method, record equal amounts of revenue and cost until cost recovered.

Sahara Desert Homes (SDH) Reports Under IFRS and Constructed a New