When the Outcome of a Fixed-Price Contract Cannot Be Reliably

Multiple Choice

When the outcome of a fixed-price contract cannot be reliably estimated,IFRS

A) permits firms to use either the completed contract method or the cost-recovery method to account for the contract.
B) rules do not permit firms to use the completed contract method.
C) follows the same accounting method required by U.S.GAAP.
D) permits considerable latitude when accounting for the contract.