The Effect That IFRIC Interpretation Titled Agreements for the Construction

question 18

Multiple Choice

The effect that IFRIC Interpretation titled Agreements for the Construction of Real Estate will have the following effect for entities that undertake off-the-plan real estate sales is that:

• A) the percentage of completion method of revenue recognition will be discontinued.
• B) the use of the completed contracts method of revenue recognition will be discontinued.
• C) the amount of revenue recognised on such sales will reduce.
• D) the amount of revenue recognised on such sales will increase.

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Definitions:

Emotional Reactions

Immediate responses of feelings to situations, events, or stimuli, varying widely across individuals.

Inhibit

To restrain or hold back an action, reaction, or process.

Intensity

The degree of strength, force, or energy in a phenomenon such as light, sound, or an emotion.

External Sources

Pertains to information or influences that come from outside an individual or system, as opposed to internal or innate sources.