In Which Circumstances Arrangements with Customers Are Contracts Within the Scope

question 6

Multiple Choice

In which circumstances arrangements with customers are contracts within the scope of IFRS 15?
I. the contract might be approved by all parties in writing, or in accordance with other customary business practices,
II. the parties are committed to carrying out their respective obligations;
III. the entity cannot identify the rights of each party with regard to the goods or services that are to be transferred under the contract;
IV. the entity cannot identify the payment terms for the goods or services to be transferred;
V. the entity has completed performing all of its obligations under the contract and has received all, or substantially all, of the consideration promised by the customer.

• A) I., II. and III.
• B) II. and V.
• C) I., II. and IV.
• D) None of the above

---

Definitions:

Discount Rate

The rate of interest applied in discounted cash flow analysis to calculate the present value of forthcoming cash flows.

Defined Contribution Plan

A retirement plan where the employer, employee, or both make contributions on a regular basis, with final benefits dependent on investment performance.

Interest Cost

The total expense for borrowing money, typically expressed as an annual percentage of the loan amount.

Actuarially Assumed

Actuarially assumed involves estimations or calculations made based on actuarial methods, often related to insurance or pensions, to predict future obligations or costs.