According to AASB 118 Revenue,revenue from services can be recognised when:
I.The amount can be measured reliably.
II.It is probable that the economic benefits will flow to the entity.
III.The stage of completion can be reliably measured.
IV.The costs incurred and the costs of completion can be measured reliably.
A)I and II only
B)II and IV only
C)III and IV only
D)I,II,III and IV.

Question

Quizplus · Accepted Answer

According to AASB 118, revenue from services can be recognized when all four conditions are met, i.e., the amount can be measured reliably, it is probable that the economic benefits will flow to the entity, the stage of completion can be reliably measured, and the costs incurred and the costs of completion can be measured reliably. Therefore, the correct choice is D, as it includes all the conditions mentioned in the standard.

According to AASB 118 Revenue,revenue from Services Can Be Recognised