Final answer:
Companies should disregard revenue guidance if it doesn't comply with revenue recognition standards like IFRS or GAAP, lacks evidence of transaction completion, or when collection is improbable.
Step-by-step explanation:
A company should disregard revenue guidance to contracts if the guidance is not compliant with revenue recognition principles, such as those outlined by the International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP).
This could happen if there is insufficient evidence that a transaction has been completed or if the collection of the revenue is not probable. Aspects such as transfer of control, measurement of performance, and contractual obligations are key factors in recognizing revenue. Companies must evaluate whether these factors have been met before recognizing revenue, or otherwise, they should defer recognition until the criteria are satisfied.