Cima F2 Exam Question No 60

Question No 60:

IAS 18 Rendering of services?

 Revenue from services should be recognised when all of the following criteria have been met:

• The revenue can be measured reliably
• It is probable that economic benefits will flow to the entity (i.e. the buyer will pay for the services)
• The stage of completion of the transaction can be measured reliably
• The costs to the seller can be measured reliably.

The revenue would then be recognised by reference to the stage of completion of the transaction at the reporting date