Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Revenue ifrs 15 sikta
- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
Stephen Widberg.
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- November 22, 2022 at 4:53 am #672012
The total contract price is $3 million for both licensing the software and the
monthly updates. Sitka Co licenses the software on a stand?alone basis for between $1
million and $2 million over a four?year period and regularly sells the monthly updates
separately for $2?5 million over the same period.(a) (i) Discuss whether the four?year software contract with Cent Co is a single
performance obligation in accordance with IFRS 15 Revenue from Contracts
with Customers including how the revenue from the contract would be
accounted for in Sitka Co’s financial statements for the year ended
31 December 20X7. Your answer should include whether the revenue should
be recognised at a point in time or over time.doubt- If I say software & its update needs to be classified as separate performance obligations then how much shall be revenue for both of them recorded?
November 22, 2022 at 2:10 pm #672067If that is your view, say based on standalone prices.
As always please refer to my recorded debrief in our revision kit.
If you think a calculation is appropriate, make an assumption.
As you know they want to see explanations. Calculations are much less important.
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