IFRS 15

Alignment Co. signed a contract to provide network service to Clumsy Ltd for one year from April 2018 for $100 per month. The contract required Clumsy Ltd to make a single payment to Alignment Co for all 12 months at the beginning of the contract. Alignment Co received 12,000 on the 1st of April 2018.

What amount of revenue should Alignment Co recognise in its statement of profit and loss for the year ended December 31, 2018?

A company enters into a contract to supply 4 types of products to a customer. The promise to supply each of these products is regarded as a separate performance obligation.

The stand alone prices of these four products are:

Product A $32,000

Product B $18,500

Product C $25,500

Product D $20,000