For long-term contracts, the cost recovery method under IFRS requires recognizing equal amounts of revenue and cost until all costs are recovered.

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Quizplus · Accepted Answer

This statement is true. The cost recovery method under IFRS requires recognizing equal amounts of revenue and cost until all costs are recovered. This means revenue and costs are recognized at the same time, resulting in zero profit until all costs have been recovered. Once all costs are recovered, any additional revenue is recognized as profit.

For Long-Term Contracts, the Cost Recovery Method Under IFRS Requires