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:

Vroom's Normative Model

A psychological theory that describes the ways leaders can decide to engage their team in decision-making processes, based on the situation's complexity and the importance of team agreement.

Shared Information Bias

A tendency in group discussions to focus on information that all members already know, neglecting unique and potentially important information.

Group Polarization

The tendency of group discussion to intensify the preexisting views of members, leading to more extreme positions.

Normative Influence

The impact of societal norms on an individual’s behavior, often leading to conformity in order to be accepted or liked by a group.