Question
IFRS 15 distinguishes between contract assets and IFRS 9 Financial Instruments receivables. Which one of the following statements is NOT correct? Select all that apply.
IFRS 15 distinguishes between contract assets and IFRS 9 Financial Instruments receivables. Which one of the following statements is NOT correct? Select all that apply.
A) A contract asset and an IFRS 9 Financial Instruments receivable are both subject to the risk of non-performance, but an IFRS 9 Financial Instruments receivable is also subject to the credit risk.
B) A contract asset arises if nothing other than the passage of time is required before payment of the customers consideration is due. Contract assets must be presented separately from receivables.
C) It is important to distinguish between a contract asset and a receivable because it provides financial statement users with relevant information about the risks associated with the entitys rights.
D) A contract asset and a receivable are both subject to the risk that the customer will cause a loss for the entity by failing to pay, but a receivable is also subject to the risk of non-performance.
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