IFRS 15 revenue recognition standard gets to grips with real-world problems

Multiple-choice questions: 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. When did IFRS 15 become effective?

  2. What body makes Agenda Decisions in respect of the application of accounting standards?

  3. Which of these is not one of the five steps per IFRS 15 Revenue from Contracts with Customers?

  4. Which, if any, of the following situations are true regarding the work of the committee? Statement 1 - Decisions can lead to narrow scope standard adjustments if they highlight a widespread or material issue, or Statement 2 - The committee is responsible for responding to queries regarding the application of accounting standards

  5. Under a real-estate contract being constructed for sale, which of the following assets would NOT be created in the books of the construction entity?

  6. Based on the Agenda Decision, how should up-front fees relating to a contract recognised over time be recognised in revenue?

  7. Which of the following relates to the Agenda Decision regarding training costs under IFRS 15?

  8. Which, if any, of the following statements is correct? Statement 1 - Borrowing costs can be capitalised on real-estate contracts with customers if the construction entity requires significant financing, or Statement 2 - Real estate contracts with customers must always result in revenue being recognised over time, rather than at a point in time

  9. Which of the five steps of IFRS 15 Revenue from Contracts from Customers deals with payments made to customers?

  10. Which, if any, of the following statements is/are true? Statement 1 - Payments made to customers should be initially deducted from revenue, or Statement 2 - The Committee made no specific guidance as how to deal with negative revenue if the compensation exceeds the initial revenue figure