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Changes to the accounting standards

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The primary business activity of Con Pewter Ltd is developing accounting software packages. Con Pewter charges $2,000 as installation fees and a separate twoyear technical support service for $1000. Otherwise, it also offers a combined goods and services contract which includes both elements for $3,400. Payment does not become outstanding until after 1 month of the accounting package being installed. The accounting team is uncertain as to how revenue should be recognised in the books post the changes to the accounting standards. Your advice on this matter would be greatly appreciated.

Reference no: EM132347327

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