If the outcome of rendering services cannot be estimated reliably, IFRS requires the use of which revenue recognition method?
Choice A - Percentage-of-completion method.
Choice B - Completed contract method.
Choice C - Cost recovery method.
Choice D - Installment method.
Choice B - Completed contract method.
Choice C - Cost recovery method.
Choice D - Installment method.
Choice “C” is correct because if the outcome of rendering services cannot be measured reliably, IFRS requires use of the cost recovery method.
Percentage of completion method is used when reliable estimates can be made.
Completed contract method is not permissible under IFRS
Installment method is revenue recognition method under US Gaap and not in IFRS.