Under IFRS 10,when Can a Venturer Recognize a Portion of the Gain

question 24

Multiple Choice

Under IFRS 10,when can a venturer recognize a portion of the gain on a contribution of assets to a joint operation?

• A)When the venturer has transferred the significant rights and rewards of ownership to the joint arrangement.
• B)When the legal documentation is signed and payment has been made by the joint arrangement to the venturer for the asset received.
• C)When the asset is put in use by the joint arrangement.
• D)When the asset is sold by the joint arrangement to an arm's length third party.

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Definitions:

Rate of Return

A measure of the profitability or efficiency of an investment, expressed as a percentage of the original investment.

Variable Cost Concept

A principle in economics that refers to costs that vary directly with the level of production or service activity.

Rate of Return

A measurement of the gain or loss on an investment over a specific period, expressed as a percentage.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.