22. Stata sells a package which gives customers a free mobile phone when they sign a...

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22. Stata sells a package which gives customers a free mobile phone when they sign a 3 year contract for provision of mobile services. The mobile phone has a stand-alone price of $270 and the mobile contract is for $30 per month. Required: a) In accordance with IFRS 15, what amount will be allocated for mobile phone transferring obligation and service providing obligation? b) Prepare the journal entries to record the transfer of a package for immediate cash payment. Answer: 22. Stata sells a package which gives customers a free mobile phone when they sign a 3 year contract for provision of mobile services. The mobile phone has a stand-alone price of $270 and the mobile contract is for $30 per month. Required: a) In accordance with IFRS 15, what amount will be allocated for mobile phone transferring obligation and service providing obligation? b) Prepare the journal entries to record the transfer of a package for immediate cash payment. Answer:

Answer rating: 100% (QA)

The question pertains to revenue recognition and how to allocate transaction price to performance obligations under IFRS 15 which is the International ... View the full answer