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Eire is a company that manufactures and sells mobile phones and mobile phone contracts.
It prepares its financial statements under International Financial Reporting Standards
and has a year end of 30 April 2020.
(a) Eire launched a promotion during the year to attract new customers to its network.
Under this promotion, customers sign a non-cancellable contract to subscribe to the
Eire network for twelve months. The cost is $30 per month, payable at the end of
each month. This price includes a new handset and network access. The normal
retail price of these elements is as follows:
Handset 250
Network access (per month) 15
In total, 100,000 new customers signed up for this promotion. The contracts all
began on 1 March 2020.how it will be accounted
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