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4) If a contract involves a significant financing component (1.5pts) the time value of money is used to determine the fair value of the transaction.

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4) If a contract involves a significant financing component (1.5pts) the time value of money is used to determine the fair value of the transaction. the time value of money is not required to determine transaction price, if the payment is scheduled to occur in more than a year. the transaction amount should be based on the current sales price of goods or services, Interest must be accrued on the current sales price of goods or services

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