In which of the following situations can one consider that the seller does not retain a significant

Question:

In which of the following situations can one consider that the seller does not retain a significant risk of ownership?

(a) For a retail sale, refund is offered if the customer is not satisfied. The seller can reliably estimate future returns and recognizes a liability for returns.

(b) The entity retains an obligation in case of unsatisfactory performance not covered by normal warranty provisions.

(c) The receipt of the revenue from a particular sale is contingent on the derivation of revenue by the buyer from its sale of the goods.

(d) The goods are shipped subject to installation, and that installation is a significant part of the contract, which has not yet been completed by the selling enterprise or on its behalf.

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting And Reporting A Global Perspective

ISBN: 9781844802500

2nd Edition

Authors: Michel J. Lebas, Herve Stolowy, Michael Lebas

Question Posted: