On December 1, 2019, Eastern Consulting Ltd. signed a contract with Parker Inc., which obligated Eastern...

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On December 1, 2019, Eastern Consulting Ltd. signed a contract with Parker Inc., which obligated Eastern to provide Parker with 14 hours of consulting services per month from January through December of 2020. The contract requires Parker to pay a total of $33,600 for these services, with payments of $2,800 due at the end of each month. Eastern has provided similar services to Parker in the past and has always collected its fees on a timely basis. Requirement Using IFRS and ASPE revenue recognition standards as a guide, determine how Eastern Consulting Inc. would recognize revenue from this transaction under both ASPE and IFRS. ASPE Step 1. The ownership (or control) and benefits of the goods have been transferred to the customer, or the services have been provided to the customer. Eastern satisfy this criteria as it 截图(Alt + A) ASPE Step 2. The amount of revenue to be received can be reliably measured. Eastern will receive $ per hour for consulting services provided. ASPE Step 3. It is probable that the customer will pay for the goods or services when payment becomes due. Parker has always paid Eastern on a timely basis, so it is probable they will pay their bill as it comes due each month. Eastern can recognize revenue of $ each time it provides Parker with of consulting services. On December 1, 2019, Eastern Consulting Ltd. signed a contract with Parker Inc., which obligated Eastern to provide Parker with 14 hours of consulting services per month from January through December of 2020. The contract requires Parker to pay a total of $33,600 for these services, with payments of $2,800 due at the end of each month. Eastern has provided similar services to Parker in the past and has always collected its fees on a timely basis. Requirement Using IFRS and ASPE revenue recognition standards as a guide, determine how Eastern Consulting Inc. would recognize revenue from this transaction under both ASPE and IFRS. ASPE Step 1. The ownership (or control) and benefits of the goods have been transferred to the customer, or the services have been provided to the customer. Eastern satisfy this criteria as it 截图(Alt + A) ASPE Step 2. The amount of revenue to be received can be reliably measured. Eastern will receive $ per hour for consulting services provided. ASPE Step 3. It is probable that the customer will pay for the goods or services when payment becomes due. Parker has always paid Eastern on a timely basis, so it is probable they will pay their bill as it comes due each month. Eastern can recognize revenue of $ each time it provides Parker with of consulting services.

Answer rating: 100% (QA)

ASPE Step1 Wentworth can satisfy this criteria as it provided similar services to P... View the full answer