Revenue recognition under IFRS 15 is based on:

A Cash collection

B Transfer of control over promised goods or services under a five-step model

C Invoice date

D Contract signing

✓ Correct Answer: Option B

IFRS 15 uses five steps: identify contract, identify obligations, determine price, allocate price, recognize when control transfers.

💡 Why is B) the correct answer?

The correct answer to the question "Revenue recognition under IFRS 15 is based on:" is Option B: Transfer of control over promised goods or services under a five-step model.

The other options — A) Cash collection, C) Invoice date, D) Contract signing — are incorrect for this CFA Exam Prep question. As explained above: IFRS 15 uses five steps: identify contract, identify obligations, determine price, allocate price, recognize when control transfers.

📚 About This CFA Exam Prep Practice Question

This 2-level CFA Exam Prep question from the Financial Reporting & Analysis topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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Revenue recognition under IFRS 15 is based on:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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