On 1 January 2018 Daly Sdn Bhd enters into a lease for a photocopier that has a
Question:
On 1 January 2018 Daly Sdn Bhd enters into a lease for a photocopier that has a fair value of RM20,000. The lease term is for three years. The photocopier will be returned to the lessor at the end of the three years. The present value of the minimum lease payment at the inception date is given at RM15,000. The useful life of the photocopier is estimated to be 4 years with no residual value.
Required:
(a) What kind of lease is this?
(b) Discuses would be the accounting treatment upon initial recognition of the lease?
(c) Describe FIVE differences between a lease and an investment property from the perspective of a lessor.
QUESTION
Twix Sdn Bhd enters in a contract with a customer on 1 January 2021 to sell to sell Product A at 100 per unit. If the customer purchases more than 1,000 units of Product A in a calendar year, the contract specifies that the price per unit is retrospectively reduced to RM90 per unit. Consequently, the consideration in the contract is variable. For the first quarter ended 31 March 2021, Twix Sdn Bhd sells 75 units of Product A to the customer. The entity estimates that the customer's purchases will not exceed the 1,000-unit threshold required for the column discount in the calendar year. However, in May 2021, Twix sells another 500 units of Product A to the customer.
Required:
According to MFRS 118 Revenue, explain the definition of revenue.
2. Discuss revenue recognition and measurement.
3. Discuss the revenue recognition for the situation.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain