Under ASPE, when is revenue recognized?

Revenue recognition under Accounting Standards for Private Enterprises (ASPE) is primarily based on the transfer of risks and rewards associated with ownership of goods or services. This principle aligns with the idea that revenue should be recognized when the seller has substantially completed the earnings process by delivering goods or services to the buyer, and the buyer has assumed the risk associated with those goods or services.

When risks and rewards have been transferred, it indicates that the seller has fulfilled its part of the agreement, thus allowing for the recognition of revenue. This approach ensures that revenue is recognized at a point in time that reflects the completion of the sale, rather than merely recording when cash is received, which can occur at different times after the actual sale takes place.

Other options do not represent the primary basis for recognizing revenue under ASPE. Recognizing revenue when cash is received doesn't account for circumstances where the transaction has occurred but payment is still pending. Recognizing revenue when the transaction price is allocated or when performance obligations are identified refers to processes within more complex frameworks like IFRS 15, which emphasizes a control-based model. These points do not reflect the ASPE framework's focus on the transfer of risks and rewards as the critical component for revenue recognition.