Under IAS 18, when it is probable that the economic benefits of interest, royalties, and dividends will flow to the enterprise and can be measured reliably, how should revenue be recognized?
A. Interest income shall be recognized based on an effective yield basis.
B. Royalties are recognized on an accrual basis with reference to the terms of the agreement.
C. Dividends are recognized when the shareholders right to receive payment is established.
D. All of the above govern revenue recognition under these circumstances.
Answer:D
Under IAS 18, when it is probable that the economic benefits of interest, royalties, and dividends will flow to the enterprise and can be measured reliably, how should revenue be recognized?
A. Interest income shall be recognized based on an effective yield basis. B. Royalties are recognized on an accrual basis with reference to the terms of the agreement. C. Dividends are recognized when the shareholders right to receive payment is established. D. All of the above govern revenue recognition under these circumstances.