- This topic has 1 reply, 2 voices, and was last updated 3 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 15 – Example 3 on lecture 2 (29 min video)
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
I’ve just looked at the solution to the example in the current notes. We do 360 and 180 which is what you are saying.