Minco often sponsors professional tennis players in an attempt to improve its brand image. At the moment,

Question:

Minco often sponsors professional tennis players in an attempt to improve its brand image. At the moment, it has a three-year agreement with a tennis player who is currently ranked in the world’s top ten players. The agreement is that the player receives a signing bonus of $20,000 and earns an annual amount of $50,000, paid at the end of each year for three years, provided that the player has competed in all the specified tournaments for each year. In return, the player is required to wear advertising logos on tennis apparel, play a specified number of tournaments and attend photo/film sessions for advertising purposes. The different payments are not interrelated.


Required:

Discuss how the above items should be dealt with in the financial statements of Minco.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

International Financial Reporting And Analysis

ISBN: 9781473766853

8th Edition

Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn

Question Posted: