Under igaap the standard for revenue recognition

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4. Under iGAAP, the standard for revenue recognition states that the I. Revenue be realized or realizable. II. Economic benefits associated with the transaction will flow to the company selling the goods. III. Costs must be capable of being reliably measured. a. I, II, and III. b. I and III only. c. II only. d. II and III only. 5. iGAAP for revenue recognition Answers to Multiple Choice: 5. d Short Answer: 1.What is a major difference between iGAAP and U.S. GAAP as regards revenue recognition practices? 1. The general concepts and principles used for revenue recognition are similar between U.S. GAAP and iGAAP. When they differ is in the detail. U.S. GAAP provides specific guidance related to revenue recognition in many different industries. That is not the case for iGAAP. Also, the SEC has issued broad and specific guidance for public companies in the United States related to revenue recognition. Again the IASB does not have a regulatory body that provides additional guidance . 2. iGAAP prohibits the use of the completed-contract method in accounting for long-term contracts. If revenues and costs are difficult to estimate, how must companies account for long-term contracts? 2. If revenues and costs are difficult to estimate, then companies recognize revenue only to the extent of the cost incurred – a zero-profit approach. 18 - 50
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