Acca financial Accounting (FA) Study Text ac ca (FA)

Preparing basic financial statements 

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KAPLAN PUBLISHING

 

The following are indicators of the transfer of control: 

•

the entity has a present right to payment for the asset

•

the customer has legal title to the asset

•

the entity has transferred physical possession of the asset

•

the customer has the significant risks and rewards of ownership of

the asset

•

the customer has accepted the asset.

This is more likely to apply when physical products or goods have been 

sold to a customer and it can be clearly established that control has been 

transferred at a specific point or date in time.