A health club enters into a contract with a customer for one year of access to...
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A health club enters into a contract with a customer for one year of access to any of its health clubs. The entity charges the customer a non-refundable joining fee of €100 in part as compensation for the initial activities of registering the customer. The customer can renew the contract each year without paying the joining fee. Should the above fee be recognised as revenue? And if yes, when? How should the entity account for the initial set-up contract costs of €70? In your answers, consider only IFRS 15. A health club enters into a contract with a customer for one year of access to any of its health clubs. The entity charges the customer a non-refundable joining fee of €100 in part as compensation for the initial activities of registering the customer. The customer can renew the contract each year without paying the joining fee. Should the above fee be recognised as revenue? And if yes, when? How should the entity account for the initial set-up contract costs of €70? In your answers, consider only IFRS 15.
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The question presented relates to revenue recognition and the treatment of initial costs under IFRS 15 the International Financial Reporting Standards ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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