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Zebra Properties Ltd $($Zebra Properties$)$ is a property development company with operations across Namibia and is registered as a VAT vendor.

Zebra Properties$$ main business is the buying and selling of land as well as constructing housing projects. They have recently opened a cleaning service division operating in Windhoek.

Zebra Properties was approached by Bokke Ltd$,$ a successful tour operator, to build their new headquarters in Swakopmund.

Zebra Properties also had a piece of land in Swakopmund which they would sell to Bokke Ltd$.$

On $30$ June $2022,$ Bokke Ltd signed an agreement with Zebra Properties to sell them the piece of land as well as build the new headquarters. The title deed of the land was transferred on that date. The total value of the contract amounts to N$$14375000($including VAT$)$

It is expected that the project will start immediately and be completed at the end of $3$ years. $($Complete $1/3$ of the building per year$).$ If the land had been sold separately it would have been sold for N$$3500000$ excluding VAT.

At $30$ June $2022,$ one third of the building had been built according to a registered quantity surveyor.

REQUIRED:

Discuss the recognition of the agreement $($only step $1$ of the $5$ step model$)$ between Bokke Ltd and Zebra Properties in accordance with International Financial Reporting Standards, IFRS$15,$ Revenue from contracts with customers in the financial statements of Zebra Properties for the year ended $30$ June $2023.(15)$