Under a Joint Exposure Draft Issued by the IASB and FASB

question 29

Multiple Choice

Under a joint Exposure Draft issued by the IASB and FASB in June 2010, Revenue from Contracts with Customers, which of the following is NOT one of the steps to be applied in the recognition of revenue across a wide range of transactions and industries?

• A)Identify the contract with a customer.
• B)Do not separate the transaction price for separate performance obligations if the contract is a bundled contract where goods and services are not sold separately.
• C)Identify the separate performance obligations in the contract.
• D)Determine the transaction price.

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Definitions:

Outcomes

The results or consequences of an action, process, or scenario.

Special-Interest Effect

Any political outcome in which a small group (“special interest”) gains substantially at the expense of a much larger number of persons who each individually suffers a small loss.

Government Policy

refers to the actions taken by a government to address issues or achieve goals, which may involve regulations, laws, or spending priorities.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services.