Which standard governs the recognition of revenue?

The correct choice is based on the fact that IFRS 15, titled "Revenue from Contracts with Customers," specifically addresses the principles relevant to revenue recognition. This standard provides a comprehensive framework for recognizing revenue in a manner that reflects the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services.

IFRS 15 outlines a five-step model for revenue recognition that includes identifying contracts, identifying performance obligations, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when the performance obligations are satisfied. This model allows for consistency and clarity in how companies recognize revenue, which is crucial for comparability across financial statements.

In contrast, the other standards mentioned do not govern revenue recognition. IAS 1 deals with presentation of financial statements, providing a framework for how an entity organizes its financial disclosures. IAS 16 focuses on property, plant, and equipment, specifically on their recognition, measurement, and derecognition. Lastly, IAS 37 concerns provisions, contingent liabilities, and contingent assets, which relates to obligations that may arise from past events but does not address the specific topic of revenue recognition. Therefore, it is clear that IFRS 15 is the