BC118 Most previous revenue Standards required an entity to assess the transfer of a good or service by considering the transfer of risks and rewards of ownership. However, the boards decided that an entity should assess the transfer of a good or service by considering when the customer obtains control of that good or service, for the following reasons:
(a) Both goods and services are assets that a customer acquires (even if many services are not recognised as an asset because those services are simultaneously received and consumed by the customer), and the boards' existing definitions of an asset use control to determine when an asset is recognised or derecognised.
(b) Assessing the transfer of goods or services using control should result in more consistent decisions about when goods or services are transferred, because it can be difficult for an entity to judge whether an appropriate level of the risks and rewards of ownership of a good or service has been transferred to the custome
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