TicketTime is a newly established company that is trying to promote new musicians. The company organizes...
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TicketTime is a newly established company that is trying to promote new musicians. The company organizes and holds concerts all over Pakistan annually during the winter/spring season. Financial year for the company stárt is July - June. TicketTime sells tickets for concerts as follows i) On day walk up single entry: Ticket prices range from Rs 3,000/-. No retum allowed i) Advance Purchase single entry: These tickets have to be purchased for a particular concert before the season starts and normally cost Rs 2,000/-. No refunds allowed. i) Annual pass: Allows entry to unlimited concerts and normally costs Rs 25,000/-. No refunds allowed How would revenue be recognised for each type of sale in accordance with IFRS 15? (Give journal entries to aid with your explanation) TicketTime is a newly established company that is trying to promote new musicians. The company organizes and holds concerts all over Pakistan annually during the winter/spring season. Financial year for the company stárt is July - June. TicketTime sells tickets for concerts as follows i) On day walk up single entry: Ticket prices range from Rs 3,000/-. No retum allowed i) Advance Purchase single entry: These tickets have to be purchased for a particular concert before the season starts and normally cost Rs 2,000/-. No refunds allowed. i) Annual pass: Allows entry to unlimited concerts and normally costs Rs 25,000/-. No refunds allowed How would revenue be recognised for each type of sale in accordance with IFRS 15? (Give journal entries to aid with your explanation)
Expert Answer:
Answer rating: 100% (QA)
Revenue recognition in each case will depend upon when the ticket is being purchased As per revenue recognition the revenue is recognised in the perio... View the full answer
Related Book For
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Posted Date:
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