Revenue recognition

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. The discussion paper may have a significant effect particularly on accounting for:

  2. In principle, the model set out in the discussion paper could apply to all contracts. Which of the following type of contract is it felt that the model would not be appropriate for?

  3. Under the proposed model, what is the principle behind the recognition of revenue?

  4. Why did the IASB and FASB feel the need to issue a discussion paper on revenue recognition?

  5. What is the objective of the Boards in producing the discussion paper on revenue recognition?