Under IAS 18, Which of the Following Is an Example

question 10

Multiple Choice

Under IAS 18, which of the following is an example of retention of significant risks and rewards by the seller?

• A)The buyer has no right to rescind the purchase.
• B)The seller is under no obligation for satisfactory performance not covered by normal warranties.
• C)Goods are sold subject to installation, but installation is not a significant part of the contract and has not yet been completed.
• D)Receipt of revenue by the seller is contingent on the buyer generating revenue through its sale of the goods.

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Definitions:

Estate

The total of all the property, assets, and debts left by an individual at death.

Ownership Interest

The possession of rights, control, and benefits of ownership in property or a company by an individual or entity.

Land

An area of the earth's surface, including its resources and physical environment, which can be owned or used.

Life Estate

An ownership interest in which the holder has the right to possess the property until his or her death.