Under PFRS 15, when shall a franchisor recognizes revenue from its contingent franchise fee, also known as sales-based royalty revenue?  Group of answer choices  When the franchisor satisfies the performance obligation in relation to the initial franchise fee based on the accounting estimate using historical evidence  When the sales of the franchisee occur  When the franchisee signs the document evidencing the franchise agreement  When the franchisor collected the nonrefundable upfront fee

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Under PFRS 15, when shall a franchisor recognizes revenue from its contingent franchise fee, also known as sales-based royalty revenue? 

Group of answer choices 

When the franchisor satisfies the performance obligation in relation to the initial franchise fee based on the accounting estimate using historical evidence 

When the sales of the franchisee occur 

When the franchisee signs the document evidencing the franchise agreement 

When the franchisor collected the nonrefundable upfront fee 

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