Chapter 1
Recognition and Measurement
9
AS-27 (
5
)
When recognizing an asset on the financial statement, must it be certain that the resource will
provide future economic benefit?
AS-28 (
5
)
A retailer sold a TV which comes with a three-year warranty. Is the warranty a liability from the
perspective of the retailer? Explain why or why not.
AS-29 (
5
)
Explain the difference between the completed-contract method and the percentage-of-
completion method for revenue recognition. Which method is allowed under IFRS?
