- This topic has 1 reply, 2 voices, and was last updated 2 months ago by Stephen Widberg.
- You must be logged in to reply to this topic.
ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>
20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>
Can you please advise how to deal with below
Company A SELLS hardware,repair and maintaince and software support
Hardware is sold for 3m$ and repair and maintainance for 1M$ and software support only sells occasionally for 0.5M$
How revenue will be recognised to below options
Company A can sell hardware and maintainance for 3.5M$ where hardware is the integral to the contract
Company A sells for 3.7M$ which covers hardware. And maintaince with software support
Option 3 COMPANY A sells for 3.8M$ where harware and maintaince are integral part of the contract
Decide which performance obligations are separate. Then allocate revenue based on standalone selling prices.
It may be worth you watching our revenue recognition lecture again.