An entity that reports using IFRS determines it has an onerous contract. How should the onerous contract be measured at initial recognition?

Question 11 options:

a)	As an asset, recorded at the penalty amount that would be received for cancelling the contract.

b)	There is no requirement to record an onerous contract.

c)	As a provision, equal to the net cost of fulfilling the contract.

d)	As a provision, at the lower of the net cost of fulfilling the contract and the penalty for not fulfilling the contract.