How does ifrs allocate the transaction price to the cake

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Reference no: EM132842543

TCBY offers a free cake with every order of 3 large ice-creams. TCBY sells the cake separately for QR 85 and each large ice-cream for QR 40

Problem 1. According to IFRS 15, when should TCBY recognize revenue from the sale of the cake?

A. At a specific point of time, as soon as any customer buys 3 large ice-creams
B. Over time, which is spread over the period that the offer is valid for
C. TBCY cannot recognize any revenue because the cake is for free
D. IFRS 15 doesn't apply to this kind of offers because of the absence of a contract

Problem 2. How does IFRS 15 allocate the transaction price to the cake?

Reference no: EM132842543

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