Under IFRS 15, which of the following is a responsibility of a principal?

Under IFRS 15, a principal recognizes revenue when it controls the goods or services before they are transferred to the customer. In this context, responsibilities of a principal include both managing risks associated with customer payments and establishing the selling price.

Managing risks associated with customer payments entails assessing the creditworthiness of customers and ensuring that the risk of non-payment is minimized. This reflects the principal's obligation to fulfill the contract and manage the associated financial risks.

Establishing the selling price indicates that the principal has the ability to set the price at which the goods or services are sold to the customer. This pricing power is critical, as it suggests the principal retains control over the overall transaction, including the profit margin.

Thus, both responsibilities highlight the principal's role in the transaction, confirming that the correct answer encompasses both aspects, as a principal bears both the risk of customer payments and control over pricing.