FAC3701 General Financial Reporting Answers
May/June 2025
QUESTION 1 PART A - Multiple Choice Questions (4 marks)
, Question Correct Answer
Question 1 1
Question 2 3
Question 3 2
Question 4 3
QUESTION 1 PART B
(a) Five Criteria for Contract Existence (IFRS 15) - 5 marks
Criterion Description
The parties to the contract have approved the contract and are committed to perform
1. Approval and Commitment
their respective obligations
2. Rights Identification The entity can identify each party's rights regarding the goods or services to be transferred
3. Payment Terms The entity can identify the payment terms for the goods or services to be transferred
4. Commercial Substance The contract has commercial substance
5. Collection Probability It is probable that the entity will collect the consideration to which it will be entitled
May/June 2025
QUESTION 1 PART A - Multiple Choice Questions (4 marks)
, Question Correct Answer
Question 1 1
Question 2 3
Question 3 2
Question 4 3
QUESTION 1 PART B
(a) Five Criteria for Contract Existence (IFRS 15) - 5 marks
Criterion Description
The parties to the contract have approved the contract and are committed to perform
1. Approval and Commitment
their respective obligations
2. Rights Identification The entity can identify each party's rights regarding the goods or services to be transferred
3. Payment Terms The entity can identify the payment terms for the goods or services to be transferred
4. Commercial Substance The contract has commercial substance
5. Collection Probability It is probable that the entity will collect the consideration to which it will be entitled
