a. Identify the different possible critical events that could be used to recognize revenue.
b. Which critical event would you recommend for recognizing revenue to satisfy the purposes of each of the following objectives? Explain. (In answering, don’t consider the constraints and the facts.)
i. Tax minimization
ii. Evaluation of management by outside shareholders
iii. Income smoothing
iv. Managing earnings to increase income
v. Cash flow prediction
c. Which of the revenue recognition methods that you identified in (a) satisfy the IFRS revenue recognition criteria? Explain.