MFRS 15: strengthening 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. What is the main reason changes were made to revenue standards/recognition and subsequently resulting in IFRS 15/MFRS 15 Revenue from Contracts with Customers?

  2. Which of the following standards are superseded with the implementation of MFRS 15 Revenue from Contracts with Customers?

  3. The disclosure requirements is aimed for an entities to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. For this, an entity shall disclose qualitative and quantitative information about the following -

  4. Revenue recognition in accordance with the underlying principle of MFRS 15 encompasses the following considerations EXCEPT -

  5. Contract costs recognised as an asset shall be amortised on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. It is also subject to impairment when -

  6. What is the underlying or core principle for revenue recognition under MFRS 15 Revenue from Contracts with Customers?

  7. When is the updated or revised effective date of MFRS 15 Revenue from Contracts with Customers in Malaysia?

  8. An entity recognises revenue when it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The following most closely describes performance obligation in relation to revenue recognition -

  9. The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. Which of the following is TRUE about the transaction price under MFRS 15?

  10. An entity shall recognise an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria, EXCEPT -