What Treatment of Revenue Recognition Is Required by AASB 141

question 39

Multiple Choice

What treatment of revenue recognition is required by AASB 141?

• A) Revenue should be recognised in the income statement on the sale of the asset. Losses should be recognised as a result of a write-down to recoverable amount.
• B) Changes in the net market values of biological assets that relate to volume changes must be recognised as revenues or expenses as appropriate in the profit and loss statement.
• C) Changes in the current replacement cost of biological assets should be treated as adjustments to the asset revaluation reserve. Revenues should be recognised on the sale of the asset and matched against the replacement cost of the asset sold.
• D) Increments and decrements in the net market values of biological assets must be recognised as revenues or expenses in the profit and loss statement for the financial year in which the increments or decrements occur.
• E) None of the given answers.

---

Definitions:

Blue Jelly Beans

A fictional or whimsical reference, typically used to illustrate statistical concepts or randomness in experiments.

Candy Company

A business entity that manufactures and sells confectionery products.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to infer properties of the population.

Timely Payments

Payments made within the agreed upon time frame as outlined in a contract or agreement.