Revenue Recognition
Payment terms are clear, commercial substance exists, and collectibility is assured
What is a contract?
This reporting framework allows for a policy choice to expense or capitalize development costs
What is ASPE?
In the fraud triangle, these are the three factors that commonly lead to fraud.
What are opportunity, pressure/incentive, and rationalization?
This term refers to real or perceived differences among people that affect their experiences, outcomes, and opportunities in organizations.
What is diversity?
The customer can benefit from the goods/services on their own & the promise to transfer is separately identifiable from other promises in the contract
What are the two criteria required for the performance obligation to be distinct?
These types of intangibles are amortized over their appropriate useful lives
What are definite life intangibles?
This internal control component refers to the overall attitude, awareness, and actions of directors and management regarding internal controls and their importance.
What is the control environment?
This EDI concept involves providing resources or support based on specific needs to ensure fair and just outcomes.
What is equity?
When a company is acting as an agent rather than a principal, revenue is recognized on this basis.
What is the net basis of accounting?
Market decline, legal changes in patent requirements, significant change in customer preferences
What are external indicators for impairment?
When the same person handles custody of assets, recording, and authorization, this key control principle is violated.
What is segregation of duties?
This refers to the degree to which employees feel respected, heard, and able to contribute meaningfully to organizational decision-making.
What is inclusion?
This method of measuring progress toward complete satisfaction of a performance obligation is based on inputs consumed relative to total expected inputs.
What is the input method in IFRS?
Formulation, design, evaluation and final selection of possible alternatives for new or improved products
What are research costs?
This type of control is designed to stop errors or irregularities before they occur, while the other is designed to identify and respond to them after they occur.
What are preventive controls and detective controls?
Studies have shown that increased racial and gender diversity are linked to improvements in this business performance metric.
What are sales revenue, customer base, and relative profit?
This is not considered a separate performance obligation, and to account for this right, entities will only be recording revenue for the amount they are entitled to keep.
What is a right-of-return transaction?
This model for subsequent measurement of an intangible asset can only be used if the FV can be reliably measured under IFRS
What is the revaluation model?
Locked safes, security cameras, and restricted access to sensitive areas are examples of this type of control activity.
What are physical (or safeguarding) controls?
This term describes when organizations superficially include members of underrepresented groups without giving them meaningful opportunities to contribute.
What is tokenism?