When should revenue be recognised in case of ex work inco term

Question

Accepted Answer

Revenue should be recognized in case of ex work inco term when the risks and rewards of ownership have been transferred to the buyer.

Revenue should be recognized when the seller has completed its obligations under the ex work inco term.
The transfer of risks and rewards of ownership to the buyer is a key factor in determining when revenue should be recognized.
The seller should have no significant continuing involvement or control over the goods after they have been delivered to the buyer.
Examples of ex work inco term include when a seller delivers goods to a buyer's premises and the buyer is responsible for all transportation and insurance costs.
Revenue recognition should align with the principles outlined in the applicable accounting standards, such as IFRS 15 or ASC 606.

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