What is the main principle difference between income and revenue under IFRS 15?

What is the main principle difference between income and revenue under IFRS 15?

• A. Revenue is derived only in the course of the entity's ordinary activities
• B. Revenue is always cash received
• C. Revenue equals net assets at year end
• D. Revenue is independent of control transfers

Answer: (A)

Revenue under IFRS 15 is the consideration an entity earns from transferring goods or services to customers, recognized when control of those goods or services passes to the customer. This ties revenue to contracts with customers and to the entity’s ordinary activities, rather than to cash movements. Cash received is not required for revenue recognition, revenue is not simply net assets, and revenue depends on the transfer of control, not on an independent timing. So the best description is that revenue comes from the ordinary course of the entity’s activities.

Revenue under IFRS 15 is the consideration an entity earns from transferring goods or services to customers, recognized when control of those goods or services passes to the customer. This ties revenue to contracts with customers and to the entity’s ordinary activities, rather than to cash movements. Cash received is not required for revenue recognition, revenue is not simply net assets, and revenue depends on the transfer of control, not on an independent timing. So the best description is that revenue comes from the ordinary course of the entity’s activities.