CERTYNEX IFRS ACADEMY

Gautia sells machines with installation. Its manager proposes to recognise all revenue when cash is received, as it is 'easier to track', whereas the standard on revenue from contracts with customers applies to these sales (case data). What should be done?

Use cash receipt if the auditor accepts it.

Apply the standard on customer contracts, which specifically applies to these sales.

Use cash receipt, because simplicity justifies the choice of policy.

Develop a hybrid policy based on the Conceptual Framework.