Cima F2 Exam Question No 61

Question No 61:

IAS 18 Interest, royalties and dividends
Interest, royalties and dividends should be recognised when:

• It is probable that economic benefits will flow to the entity
• The revenue can be measured reliably.

Interest and royalties should be recognised on an accruals basis, i.e. when earned rather than received. Dividends should be recognised when the right to receive them is established.