Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ifrs 15 provides guidance for the accounting for c

IFRS 15 provides guidance for the accounting for consideration received without the contract criteria being...

80.2K

Verified Solution

Question

Accounting

IFRS 15 provides guidance for the accounting for consideration received without the contract criteria being met. Which one of the following statements is correct? Creamery Ltd. receives MU10,000 cash from a customer at contract inception but the contract criteria in IFRS 15 are not met therefore it would process the following journal upon receipt of the cash: Dr Cash MU10,000 Cr Other Income MU10,000 Cookie Crumbs Inc. receives MU18,000 from a customer six months before the contract criteria in IFRS 15 are met. As the contract criteria will ultimately be met, it would process the following journal upon receipt of the cash: Dr Cash MU18,000 Cr Revenue MU18,000 Sweet Tooth Ltd. receives MU38,000 from a customer before the contract criteria in IFRS 15 are met. As a result, it continues to assess the criteria and therefore upon receipt of the cash it processes the following journal: Dr Cash MU38,000 Cr Contract liability MU38,000 Fudgy Bites Inc. receives MU50,000 from a customer at contract inception however since the contract criteria in IFRS 15 are not met, it would process the following journal entry upon receipt of the cash: Dr Cash MU50,000 Cr Liability MU50,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Graph shows a hypothetical speed distribution for a sample of N gas dN dN particle...

Physics
Q

Kinesiology has not always been called kinesiology? What was the field called in the late 1800s...

Biology
Q

Which statement best describes DNA polymerase O It catalyzes addition of new nucleotides to the...

Biology
Q

19 Sometimes symbols and abbreviations are used in place of a word or phrase What...

Geometry
Q

Determine the domain and range of each exponential function.a. y = -5(1.2)x-7+ 10b. y=13(0.7)-2x+11-99

Geometry
Q

The first customer paid 12 for 14 postcards and 5 large envelopes The second customer...

Basic Math
Q

Use the given transformation to evaluate the integral.??3x dA, where R is the region bounded...

Calculus
Q

Find the fifth term of a geometric sequence for which a3 Select one 040 O...

Algebra
Q

BobCat Inc. has cash of $22,000, accounts receivable of $78,000, inventory of $62,000, prepaid insurance...

Accounting
Q

Create a balance sheet with the following data. I already have the trial balance and...

Accounting
Q

at december 31, 2017, albrecht corporation had outstanding 373,000 shares of common stock and 8000...

Accounting
Q

Move than one of the answers would pocur. Net enconse would increase The confribution margin...

Accounting