S Ltd runs a business that sells mining equipment and related products to customers. On 31...

 

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S Ltd runs a business that sells mining equipment and related products to customers. On 31 March 2022, A Ltd sent the following order to S Ltd: 5 Granby cars (type XX) 1 Locomotive 12 Turnouts $ 159 600 13 680 1368 174 648 (Note: The prices at which the goods are ordered are in agreement with S Ltd's price list and include VAT). On 5 April 2022 the goods were delivered to A Ltd's premises. The accompanying invoice, issued by S Ltd, amount to $174 648 (including VAT) and is payable on or before 30 April 2022. Both parties to the contract are registered VAT vendors in accordance with the VAT Act. A Ltd Ltd is a customer with an excellent payment record. Required: a. State the core principle of IFRS 15 for the recognition of revenue (sales) from a contract with a customer. b. Recognise the revenue (sales) by applying the five step model of IFRS 15. Note: Accept that the contract between the two parties satisfies the requirements of step 1. S Ltd runs a business that sells mining equipment and related products to customers. On 31 March 2022, A Ltd sent the following order to S Ltd: 5 Granby cars (type XX) 1 Locomotive 12 Turnouts $ 159 600 13 680 1368 174 648 (Note: The prices at which the goods are ordered are in agreement with S Ltd's price list and include VAT). On 5 April 2022 the goods were delivered to A Ltd's premises. The accompanying invoice, issued by S Ltd, amount to $174 648 (including VAT) and is payable on or before 30 April 2022. Both parties to the contract are registered VAT vendors in accordance with the VAT Act. A Ltd Ltd is a customer with an excellent payment record. Required: a. State the core principle of IFRS 15 for the recognition of revenue (sales) from a contract with a customer. b. Recognise the revenue (sales) by applying the five step model of IFRS 15. Note: Accept that the contract between the two parties satisfies the requirements of step 1.

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a Core Principle of IFRS 15 for Recognition of Revenue The core principle of IFRS 15 for the recognition of revenue from a contract with a customer is ... View the full answer