Timing of Revenue Recognition

question 37

Essay

Timing of revenue recognition
Asana Inc. enters into a contract with Modo Company to develop and install a customized enterprise resource planning system (ERP). Progress payments are made upon completion of each stage of the contract. If the contract is terminated, the partly completely ERP will pass to Modo Company. Asana is prohibited from directing the software to another customer (and besides, it is likely too customized to do so, anyway). Asana Inc. prepares its financial statements in accordance with IFRS.
Instructions
At what point should Asana recognize revenue related to its contract with Modo Company?

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Definitions:

Data Warehousing

The process of collecting, storing, and managing large volumes of data from various sources in a centralized location for analysis and reporting purposes.

Large Datasets

Large datasets typically refer to collections of data that are so voluminous and complex that traditional data processing software tools are inadequate to deal with them.

Deep Learning

A subset of machine learning in artificial intelligence (AI) that involves networks capable of learning unsupervised from data that is unstructured or unlabeled.

Labeled Data

Data that is tagged with one or more labels, identifying certain properties or classifications, which is used for supervised learning in machine learning algorithms.