Which of the following is NOT a condition that needs to be satisfied prior to recognising revenue from the rendering of services using the 'percentage of completion' method?
A) the amount of revenue can be measured reliably
B) the stage of completion of the transaction can be measured reliably
C) the costs of the transaction (including future costs) can be measured reliably
D) the contract is non-cancellable.

Question

Quizplus · Accepted Answer

None of the conditions listed mention that the contract must be non-cancellable. The other three options are conditions that must be met before revenue can be recognised under the percentage of completion method.

Which of the Following Is NOT a Condition That Needs