ACC 305 ACC305 Week 2 Homework Chapter 18

ACC 305 Week 2 Homework Chapter 18

Brief exercise 18-3, 18-6, 18-10

Exercise 18-1, 18-8, 18-12

1. The joint project of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) related to revenue recognition includes

I. Evaluating a "customer-consideration" model.

II. Eliminating inconsistencies in the existing conceptual guidance.

III. Establishing a single, comprehensive standard.

2. Belgium Co. is constructing a tunnel for $600 million. Construction began in 2013 and is estimated to be completed in 2018. At December 31, 2015, Belgium has incurred costs totaling $267 million with $64 million of that incurred in 2015, $107 million in 2014, and the remainder during 2013. Belgium believes that it completed 30% of the tunnel during 2015, although that may change based on future activity. Belgium Co. uses IFRS for its accounting and regards its cost numbers as very uncertain. What amount of revenue should Belgium Co. recognize for the year ended December 31, 2016?

3. Portugal, Inc. uses IFRS for its external financial reporting. How much revenue should Portugal, Inc. report on its income statement for the year ended December 31, 2015?

4. Under IFRS, the standard for revenue recognition states that the

I. Revenue be realized or realizable.

II. Economic benefits associated with the transaction will flow to the company selling the goods.

III. Costs must be capable of being reliably measured.

5. IFRS for revenue recognition