International Financial Reporting Standards They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and standards for accounting at global level. The revenue recognition principle The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed. Performance obligation Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. To determine: The amount of revenue should be allocated to each component under IFRS.

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Chapter 5, Problem 5.34E

Requirement – 1

To determine

International Financial Reporting Standards

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and standards for accounting at global level.

The revenue recognition principle

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Performance obligation

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To determine: The amount of revenue should be allocated to each component under IFRS.

Requirement – 2

To determine

The amount revenue recognized at the time conveyer is installed under IFRS.

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