The third criterion is referred to as Collectability. The seller has completed its performance since the buyer now owns good and also all the risks and rewards associated with it. E.g.: A company has sold the good and the customer walks out of the store with no warranty on the product. Performance occurs when the seller has done most or all of what it is supposed to do to be entitled for the payment.
The first two criteria mentioned above are referred to as Performance. Costs of earning the revenue can be reasonably measured.The amount of revenue can be reasonably measured.Collection of payment is reasonably assured.The seller has no control over the goods sold.Risks and rewards have been transferred from the seller to the buyer.IFRS provides five criteria for identifying the critical event for recognizing revenue on the sale of goods: International Financial Reporting Standards criteria 1 International Financial Reporting Standards criteria.