Reference no: EM132662735

Problem 1: If an organisation received non-cash consideration from a customer in return for providing a good or service, then how would the entity determine how much to assign to sales revenue? (Please, articulate your answer based on AASB 15).

Problem 2: If an entity recognises the revenue associated with a contract with a customer over time (rather than at a point in time), would this approach be considered more conservative than an approach that defers profit recognition until the completion of the contract (that is, at a future point in time)?

Problem 3: First Point Ltd commences operations by issuing 1 million shares at a price of $1.40 per share, payable in full on application. Application monies are received on 31 July 2023 and the shares are allotted on 4 August 2023. The share issue is made as a result of an offer being made to the public.

Problem 4: Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares.