CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Revenue recognition examples of conservatism in IFRS include the following EXCEPT FOR:
A. A company should not recognize an insurance receivable until the insurance company acknowledges the validity of the claimed amount.
B. Value appreciation of commodity inventories should not be recognized until they are sold.
C. Companies in the oil and gas industry can recognize at most 10% of total possible revenue when oil and gas reserves are discovered.
Explanation: They cannot recognize sales revenue until the energy resources are extracted.

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