Rick enters into a 12-month platinum contract with OSN, which provides Rick with a family plan (that includes 4 Disney Channels) and a free OSN HD Box for a price of $50 per month. OSN sells the OSN HD Box (which provides a limited number of free channels when connected to any dish in the US) and the same family plan separately for $70 and $45 per month, respectively.

Advise OSN’s accountant on how to recognize revenue from the above sale based on your expertise in the principles-based, five-step model in IFRS 15.

Answer rating: 100% (QA)

According to Step 4 Allocation of price to performance ... View the full answer