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A contract does not qualify for revenue recognition if either party can unilaterally cancel the contract before performance without compensating the other party. the contract
A contract doesnotqualify for revenue recognition if
- either party can unilaterally cancel the contract before performance without compensating the other party.
- the contract is wholly unperformed.
- contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods.
- any one of these choices apply.
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Principles of Financial Accounting chapters 1-17
Authors: John Wild, Ken Shaw, Barbara Chiappetta
23rd edition
1259687740, 1259687747, 978-1259687747
