Problem $2-25($IFRS$)$

Alyanna Company operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on purchases. Program members can redeem the points for further purchases. The points have no expiry date.

During $2024,$ the customers earned $60,000$ points and management expected that $100\%$ of these points will be redeemed. $$

The stand$-$alone selling price of each loyalty point is estimated at P$20.$ The sales during $2024$ amounted to $P6,800,000$ based on stand$-$alone selling price.

On December $31,2024,28,800$ points have been redeemed in exchange for purchases. In $2025,$ the management revised expectations and now expected $90\%$ of the points to be redeemed. In $2025,$ the entity redeemed $9,000$ points.