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CA Final Ind AS 115 Revenue from Contracts with Customers — practice questions

Explore 48 free Ind AS 115 Revenue from Contracts with Customers questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 115 Revenue from Contracts with Customers questions and exercises with answers

Showing questions 1–30 of 48.

In which year was the final IFRS 15 standard issued?Read the answer and worked solution →How many steps does the IFRS 15 revenue model have?Read the answer and worked solution →What is the first step of the five-step revenue model?Read the answer and worked solution →Which step comes immediately after determining the transaction price?Read the answer and worked solution →Which feature must a contract have before it counts as a contract with a customer?Read the answer and worked solution →Which condition helps make a promised good or service distinct?Read the answer and worked solution →Which approach uses a probability-weighted average of possible amounts?Read the answer and worked solution →Under the most likely amount method, what is the price?Read the answer and worked solution →A settlement discount for early payment is an example of what?Read the answer and worked solution →Non-cash consideration in a contract is measured using which standard?Read the answer and worked solution →When is a significant financing component present in a contract?Read the answer and worked solution →How is the gap from a significant financing component recognized?Read the answer and worked solution →If the customer pays before the entity performs, the financing adjustment uses what?Read the answer and worked solution →If the entity performs before payment is due, the financing adjustment uses what?Read the answer and worked solution →What is a contract asset under IFRS 15?Read the answer and worked solution →How can progress on an over-time obligation be measured?Read the answer and worked solution →IFRS 15 became effective for annual periods beginning on or after which date?Read the answer and worked solution →Which US body ran a joint revenue project with the IASB?Read the answer and worked solution →When did the IASB begin its revenue project?Read the answer and worked solution →Compared with earlier guidance, IFRS 15 may change the timing of revenue how?Read the answer and worked solution →The revenue recognition principle says revenue is recognized when it is what?Read the answer and worked solution →The revenue recognition principle is a cornerstone of which basis, together with matching?Read the answer and worked solution →Cash accounting recognizes revenue at which point?Read the answer and worked solution →Accrued revenue is revenue recognized at what time relative to cash?Read the answer and worked solution →How is deferred revenue classified in the balance sheet?Read the answer and worked solution →An advance payment received before delivery is initially shown as what?Read the answer and worked solution →Revenue from letting others use assets is recognized when?Read the answer and worked solution →Revenue from selling inventory is usually recognized when?Read the answer and worked solution →Under the converged ASC 606 and IFRS 15 guidance, revenue is recognized when what transfers?Read the answer and worked solution →A company sells a product with a buyback price covering all costs and holding costs. How is it treated?Read the answer and worked solution →

Worked practice questions

In which year was the final IFRS 15 standard issued?

  1. 2008
  2. 2010
  3. 2014
  4. 2018
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Correct answer: C. 2014

The IASB issued the final revenue standard on 28 May 2014, after exposure drafts in 2010 and 2011.

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How many steps does the IFRS 15 revenue model have?

  1. Four
  2. Seven
  3. Six
  4. Five
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Correct answer: D. Five

The model runs from identifying the contract to recognizing revenue, in five steps.

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What is the first step of the five-step revenue model?

  1. Identify the contract with a customer
  2. Determine the transaction price
  3. Allocate the price to obligations
  4. Recognize revenue on fulfilment
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Correct answer: A. Identify the contract with a customer

Nothing can be measured until a valid contract with a customer has been identified, so that comes first.

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