I. PFRS 15 provides that where a contract with a customer has multiple performance obligations, an entity will allocate the transaction price to the performance obligations in the contract by reference to their relative standalone selling prices However, if a standalone selling price is not directly observable, the entity will need to estimate it. PFRS 15 suggests the following various methods to estimate the standalone selling price of each performance obligation, except A. NetRealizableValueApproach B. AdjustedMarketAssessmentApproach C. ExpectedCostPlusAMarginApproach D. ResidualApproach
I. PFRS 15 provides that where a contract with a customer has multiple performance obligations, an entity will allocate the transaction price to the performance obligations in the contract by reference to their relative standalone selling prices However, if a standalone selling price is not directly observable, the entity will need to estimate it. PFRS 15 suggests the following various methods to estimate the standalone selling price of each performance obligation, except
A. NetRealizableValueApproach
B. AdjustedMarketAssessmentApproach
C. ExpectedCostPlusAMarginApproach
D. ResidualApproach
II. PFRS 15 provides that an entity recognizes revenue from contract with customer over time if any
of the following criteria is met, except
A. The customer simultaneously receives and consumes all of the benefits provided by the
entity as the entity performs.
B. The entity's performance creates or enhances an asset that the customer controls as the
asset is created.
C. The entity has transferred physical possession of the asset.
D. The entity's performance does not create an asset with an alternative use to the entity and
the entity has an enforceable right to payment for performance completed to date.
III. What method shall be employed by a franchisor in the recognition of gross profit from initial franchise fee when its payment is deferred but the probability of its collection is reasonably assured?
A. Accrual Basis
B. Cost Recovery Basis
C. Installment Basis
D. Zero Profit Basis
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