Office Equipment Supply Inc. (OES) is a dealer of office furniture from two major manufacturers. OES does not hold any inventory, but customers can select furniture from the manufacturers' catalogues. OES has some discretion in setting the prices as long as the contract price falls within a range provided by the manufacturer. OES prepares the contract and submits it to the manufacturer after the customer signs it. At the time the contract is signed, the customer must pay 50% of the transaction price. OES has three days to remit this amount directly to the manufacturer. When the goods are available, the manufacturer ships the products directly to the customer. The final payment is due on delivery, and OES collects it. Depending on the manufacturer and product, OES will keep between 12% and 18% of the total contract amount and remit the remaining amount to the manufacturer, again within three days. The manufacturer is responsible for resolving any problems related to the product after delivery. 

Required:

How should OES recognize revenue on furniture sales? 

Assume OES follows IFRS.  

Answer rating: 100% (QA)

Under IFRS revenue recognition for OES on furniture sales should adhere to the following principles ... View the full answer