Question
Business B enters into a contract to construct an asset for Company Y. The asset will take eight weeks to construct and payment will be
Business B enters into a contract to construct an asset for Company Y. The asset will take eight weeks to construct and payment will be made at the end of the eight-week period when Company Y receives the asset. However, Company Y is required to pay a deposit at the start of the contract. If the customer terminates the contract before its completion, Business B is only entitled to this deposit. When would business B recognize revenue from this contract? Select one: a. When the asset Business B creates has no alternative use to Company Y b. When construction of the asset completed to the customers initial specification c. When the risks and rewards of ownership have transferred to the customer d. Over the eight-week construction period, in line with the work Business B is carrying out
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