Question

以下哪种情况 不是 潜在误导性报告的示例？

选择一个：

A. Recognizing revenue after goods are delivered

B. Channel stuffing

C. Mischaracterizing transactions as arm's length

D. Overly optimistic estimates

Answer 1

A. The revenue recognition principle dictates the process and timing by which revenue is recorded and recognized as an item in a company’s financial statements.

Revenue recognition criteria

According to IFRS standards, all of the following five conditions must be met for a company to recognize revenue:

• There is a transfer of significant risks and rewards associated with ownership
• There is a loss of continuing managerial involvement or control to the degree usually associated with ownership
• The amount of revenue inflow can be measured reliably
• It is probable that economic benefits will flow to the seller
• The costs incurred or the cost to be incurred can be measured reliably

Revenue recognition for the sale of goods

For the sale of goods, most of the time, revenue is recognized upon delivery. This is because, at the time of delivery, all five criteria are met. An example of this may include Whole Foods recognizing revenue upon the sale of groceries to customers.

B).Channel stuffing is a deceptive business practice used by a company to inflate its sales and earnings figures by deliberately sending retailers along its distribution channel more products than they are able to sell to the public

C).An arm’s length transaction, also known as the arm’s length principle (ALP), indicates a transaction between two independent parties in which both parties are acting in their own self-interest. Both buyer and seller are independent, possess equal bargaining power, are not under pressure or duress from the opposing party, and are acting in their own self-interest to attain the most beneficial deal.

D).Being too optimistic can lead to impracticality and overconfidence. If you don't think about what could go wrong, you won't be able to prevent it from happening. Mental strength stems from a good balance of realism and optimism