Hi,
I am struggling with example 3 on revenue recognition to do with Telephonica.
I am happy that the handset and data in total for a competitor is £720. (Handset is £480 and charges are £240).
Telephonica are charging £45 per month so in total £540.
When we allocate the price why don't we do:
Handset : £480/720 * 540 = £360
Data : 240/720 * 540 = £180
Thank you
M
Ask the Tutor ACCA SBR
IFRS 15 - Example 3 on lecture 2 (29 min video)
6y ago#1I've just looked at the solution to the example in the current notes. We do 360 and 180 which is what you are saying.
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