Which of the Following Is NOT a Scenario Under Which

question 17

Multiple Choice

Which of the following is NOT a scenario under which a company may recognize revenue over a period in time?

• A) The customer receives and consumes the benefits as the seller performs.
• B) The company's earnings would be more consistent under this approach.
• C) The customer controls the asset as it is created or enhanced.
• D) The company does not have an alternative use for the asset created or enhanced.

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Definitions:

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable directly or indirectly to the parent company, reflecting minority shareholders' equity in the subsidiary's net assets.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership equity spread among shareholders.

Entity Approach

A concept in consolidation accounting that treats the group of parent and subsidiary companies as a single reporting entity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.