Under IAS 18, which of the following is an example of retention of significant risks and rewards by the seller?
A. The buyer has no right to rescind the purchase.
B. The seller is under no obligation for satisfactory performance not covered by normal warranties.
C. Goods are sold subject to installation, but installation is not a significant part of the contract and has not yet been completed.
D. Receipt of revenue by the seller is contingent on the buyer generating revenue through its sale of the goods.
Answer:D
Under IAS 18, which of the following is an example of retention of significant risks and rewards by the seller?
A. The buyer has no right to rescind the purchase. B. The seller is under no obligation for satisfactory performance not covered by normal warranties. C. Goods are sold subject to installation, but installation is not a significant part of the contract and has not yet been completed. D. Receipt of revenue by the seller is contingent on the buyer generating revenue through its sale of the goods.