Current Attempt in Progress

Jimmy Eeggs signs a one$-$year contract with Blossom Streaming. The terms of the contract are that Jimmy is required to pay a non$-$

refundable initiation fee of $$80.$ After the first year, Jimmy can renew his membership by paying an annual membership fee of $$4$ per

month. Blossom determines that its customers, on average, renew their annual membership three times after the first year before

terminating their membership.

What amount of revenue should Blossom recognize in its first vear given that the membership renewal is a material right? The

company follows IFRS.

Revenue recognized in first year