Under IAS 18 interest revenue is recognised as follows:
A) On a straight line method
B) On an effective interest method
C) On either an effective interest method, or a straight line method, depending on which method the entity feels provides the most relevant and reliable information.
D) At the time of receipt of the interest.

Question

Quizplus · Accepted Answer

Interest revenue under IAS 18 is recognized using the effective interest method, which allocates interest income over the relevant period.

Under IAS 18 Interest Revenue Is Recognised as Follows