If the Unavoidable Costs of Completing a Purchase Commitment Are

question 18

Multiple Choice

If the unavoidable costs of completing a purchase commitment are higher than the expected benefits from receiving the contracted goods or services, IFRS requires a loss provision to be recognized. This is known as a(n)

• A) executory contract.
• B) purchase commitment.
• C) onerous contract.
• D) impaired contract.