QUESTION 1:

A) A Ltd sells computer software to B Ltd on 1 Jul 20X8 for 800,000, a price which includes the provision of a support service for 2 years.

A Ltd sells this software to other customers without the support service for 700,000 and has other service contracts providing similar support at a price of 150,000 per annum.

What should be recognised for the year ended 31 December 20X8 according to IFRS 15 Revenue from Contracts with Customers?

B)

Venus Ltd has a contract to supply catering services to a retail company and it is to be supplied evenly over two year period from 1 Oct 2017- 31 Sep 2019. The agreed contract price is 240,000. The year end is 31 Dec.

Identify what to recognize in Income Statement for 31 Dec 2018?

C) A furniture retailer sells goods to a customer for 80,000 on 1 January 2020 Delivery will take place immediately and the company has given the customer an interest-free credit period of 36 months. Discount rate is 6%.

What is recognized for the year-end 31 Dec 2020.

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