In January, Hometown Appliances announces a sale on its kitchen appliances package Including a refrigerator, a...
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In January, Hometown Appliances announces a sale on its kitchen appliances package Including a refrigerator, a cooking range with an overhead microwave, and a dishwasher, with an extended warranty plan for five years, for a total package price of $4,999. As an additional incentive, customers buying the package will receive a free 55 Smart TV. The individual prices of the items included are as follows: Refrigerator Cooking range with overhead microwave Dish Washing machine 5-year extended warranty on above The 55 Smart TV retails for $799, but costs Hometown Appliances $450. Required: Allocate the transaction price to e performance obligations in accordance with IFRS 15 (3 marks). IL $1,999 1,799 899 599 Explain briefly when revenue should be recognized for the separate performance obligations (2 marks) In January, Hometown Appliances announces a sale on its kitchen appliances package Including a refrigerator, a cooking range with an overhead microwave, and a dishwasher, with an extended warranty plan for five years, for a total package price of $4,999. As an additional incentive, customers buying the package will receive a free 55 Smart TV. The individual prices of the items included are as follows: Refrigerator Cooking range with overhead microwave Dish Washing machine 5-year extended warranty on above The 55 Smart TV retails for $799, but costs Hometown Appliances $450. Required: Allocate the transaction price to e performance obligations in accordance with IFRS 15 (3 marks). IL $1,999 1,799 899 599 Explain briefly when revenue should be recognized for the separate performance obligations (2 marks)
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IAccording to IFRS 15 the transaction price should be allocated to the performance o... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Posted Date:
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