Question

An entity sells a factory building held for 20 years. The legal title transfer occurs on 30 September; economic control passed and risks transferred on 15 September when buyer took possession and started using it. The buyer paid full consideration on 10 October. When should the seller derecognise the building and recognise profit or loss?

A 15 September — when risks and rewards transferred.
B 30 September — on legal title transfer only.
C 10 October — on receipt of cash.
D At the earlier of legal title transfer or when cash is received.
E Recognise proportionally across September and October.
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