Ifrs 15 revenue from contracts with customers

Assignment Help Financial Accounting
Reference no: EM133206154

Problem:

Flying Power Limited entered into two separate service contracts with two customers:

DESCRIPTION

CUSTOMER A 

CUSTOMER B 

Contract Inception 

1 January 20x6 

1 January 20x6 

Contract price (at inception) 

R200 000 

R600 000 

Rebate (price reduction) 

R80 000 (note 1&2) 

Various (note 3&4) 

Service duration 

2-month period 

3-month period 

Services provided 

January & February 

January & February 

Amounts paid as at 28 February 20x6 

R140 000 (note 2) 

None 

At contract inception, Flying Power Ltd expected that customer B would provide a BEE certificate proving a Level 1 contribution. This certificate was expected before 20 February 20x6. 

Note 4: Customer B presented the necessary documentation on 18 February 20x6 (before the deadline has expired). Upon analysis thereof, it was determined that customer B was actually a Level 2 contributor.

Required:

a) Show the journals that Flying Power Ltd must process relating to the information presented above(relating to both customers A & B)for the 28 February 20x6 financial year.

b) Provide an explanation for your journals with specific reference to IFRS 15 Revenue from Contracts with Customers.

Reference no: EM133206154

Questions Cloud

Prepare the statement of changes in equity of fleecy ltd : Fleecy Limited is a company that sells a range of thermal and fleece clothing to retailers around the country. The company is listed on the JSE.
Is recruiting nurses abroad a good idea for u.s. hospitals : Is recruiting nurses abroad a good idea for U.S. hospitals facing worker shortages and Can you think of any cultural problems U.S. hospitals might encounter
How does gilligan describe the best moral theory : In the reading by Annette Baier, how does Gilligan describe the best moral theory? Why does Newton believe that preferential treatment undermines justice?
How will you determine level of pain patient is experiencing : What is the mechanism of action for this medication? How will you determine the level of pain the patient is experiencing?
Ifrs 15 revenue from contracts with customers : Flying Power Limited entered into two separate service contracts with two customers:
What are the barriers to communication : What are the barriers to communication that may exist, preventing new hires from being better equipped for interpersonal contact?
Evaluate the fairness of the compensation packages : Evaluate the fairness of the compensation packages for two CEOs for a specific period, based on their organizations' performance during that period
Compares and contrasts the financial ratios : Measures of Liquidity Profitability and Solvency Discussion - Compares and contrasts the financial ratios of Boeing and Airbus
Identify one area in your health care leadership role : HSC 243 University of Lagos Nigeria. Identify one area in your health care leadership role and one area in your current role as a doctoral learner.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Analyze the position that the government

1. Choose a current, socially-relevant topic, that has been reported on in news media within the past year.

  Prepare balance sheet for park building capital project fund

Capital Projects Transactions. In 2017, Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. Prepare journal ent..

  What was the amount of revenue for july

What was the amount of revenue for July - Received $1,280 cash from a customer for services to be rendered next year

  Find what is the macaulay duration

Find what is the Macaulay duration? A zero-coupon bond has a par value of $1,000 and matures in 6.5 years. The yield to maturity is 5.5 percent.

  What the number of t-shirts the company must sell

What the number of T-shirts the company must sell to break even in the coming year is? Newham Textiles manufactures and sells T shirts imprinted with college

  What is cost of common equity for dance inc

You have been hired as a consultant by Dance Inc.'s CFO, who wants you to help. What is the cost of common equity from reinvested earnings?

  What is price of a five percent coupon bond with ten year

Assume that interest payments are paid, What is the price of a 5 percent coupon bond with 10 years left to maturity and a market interest rate of 7.2 percent?

  Capital contributions

Personally liable on those debts and obligations.Liable for those debts and obligations only up to the amount of his capital contributions.

  How much is venice company equity

One month after the loan was obtained, Venice Company paid AB Finance P300,000 plus interest. How much is Venice Company equity

  How do compute the after-tax cost of debt

Compute the after-tax cost of debt. Ignore flotation costs. The bond is priced to sell at 88.14. The tax rate is 40%. The maturity of a bond is 12 years

  Indicate the effect on the audit

When assessing the fraud risk, Indicate the effect on the audit if such a fraud is discovered by the auditors when they start their audit procedures.

  Explain capitalized assets and historical costs

Explain capitalized assets and historical costs to him. After the meeting, you want to provide Prahbu a written document about the discussion for his use.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd