Alma Books Ltd. (Alma) is a national chain of bookstores. Alma earns revenue in several different ways:
a. Sale of books and magazines to customers in its stores-customers pay cash or use debit or credit cards (Visa or MasterCard) to pay for their purchases.
b. Online sales-customers can browse for books on the company's Web site and make purchases online using a credit card or PayPal. Alma ships the order as soon as it's available. Customers sometimes have to wait if an item isn't in stock.
c. Loyalty program-customers pay $20 per year for membership and receive discounts on their in-store or online purchases. Membership is for one year from the date of purchase.
d. Sale of gift cards-the cards, which can value from $5 to $500, allow customers to purchase items in the store or online without using their own cash. There are no service charges associated with the cards.
Use the five IFRS revenue recognition criteria to determine when revenue should be recognized for each source of revenue. Explain your reasoning.