Question 1 Surfside Ltd is marketing a 'surfing bundle' in which, for $1100, it provides customers...

 

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Question 1 Surfside Ltd is marketing a 'surfing bundle' in which, for $1100, it provides customers with a surfboard (which retails separately for $850), a wetsuit (which retails separately for $250) and five lessons (which retail separately for $200). You are required to determine: (a) Whether separate performance obligations exist, and to explain why you made this judgement. (b) How much of the transaction price to allocate to each performance obligation. LO 15.7.15.8.. Question 2 If an organisation received non-cash consideration nti from a customer in return for providing a good or service, then how would the entity determine how much to assign to sales revenue? (Please, articulate your ans based on AASB 15). Question 3 If an entity recognises the revenue associated with a contract with a customer over time (rather than at a point in time), would this approach be considered more conservative than an approach that defers profit recognition until the completion of the contract (that is, at a future point in time)? 187 Question 4 Finali First Point Ltd commences operations by Issuing 1 million shares at a price of $1.40 per share, payable in full on application, Application monies are received on 31 July 2023 and the shares are allotted on 4 August 2023. The share issue is made as a result of an offer being made to the public. Page 524 REQUIRED Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares. LO 13.4. Question 1 Surfside Ltd is marketing a 'surfing bundle' in which, for $1100, it provides customers with a surfboard (which retails separately for $850), a wetsuit (which retails separately for $250) and five lessons (which retail separately for $200). You are required to determine: (a) Whether separate performance obligations exist, and to explain why you made this judgement. (b) How much of the transaction price to allocate to each performance obligation. LO 15.7.15.8.. Question 2 If an organisation received non-cash consideration nti from a customer in return for providing a good or service, then how would the entity determine how much to assign to sales revenue? (Please, articulate your ans based on AASB 15). Question 3 If an entity recognises the revenue associated with a contract with a customer over time (rather than at a point in time), would this approach be considered more conservative than an approach that defers profit recognition until the completion of the contract (that is, at a future point in time)? 187 Question 4 Finali First Point Ltd commences operations by Issuing 1 million shares at a price of $1.40 per share, payable in full on application, Application monies are received on 31 July 2023 and the shares are allotted on 4 August 2023. The share issue is made as a result of an offer being made to the public. Page 524 REQUIRED Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares. LO 13.4.

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QUESTION 1 Whether separate performance obligations exist and to explain why you made this judgement From the information given it seems that there are three separate performance obligations the surfb... View the full answer