Under IFRS 15, when shall the incremental cost of obtaining a contract with a customer be recognized as an asset? When the entity expects to recover those costs. When it is probable that future economic benefits will flow to the entity and the cost can be measured reliably When the costs will decrease the revenue in the future periods. When the costs will provide economic benefits for a period less than 12 months.

Q: Continuing franchise fees should be recognized O over time depending on the revenue recognition…

A: Revenue -  The amount of money received by a company during a specific period as a result of the…

Q: During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019,…

A: Gross profit realized for 2019 is calculated in the following table: Contract price 1,000,000…

Q: a) Using the above data, compute the gross profit to be recognised for each of the three years,…

A:

Q: How should Loud account for this contract modification? Additional Instruction The contract…

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Q: If at the end of the second year of a 4-year contract, a company determines total estimated costs…

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Q: Sim STar Ltd is a telecommunications provider. On 1 January 2020, the company entered into a…

A: Definition: Revenue recognition as per IFRS 115 revenue of contracts with customers mandates that if…

Q: What portion of the total contract price would be recognized as revenue in 2020? In 2021? Revenue…

A: Using percentage of completion method, the revenue is recognized on the basis of percentage of work…

Q: Revenue should be recognized over time when a performance obligation is satisfied over time. That…

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Q: Which of the following statements is not applicable to contract acquisition costs under ASC Topic…

A: In the given case all of the following statements is applicable to contract acquisition costs under…

Q: When it is probable that total contract costs will exceed total contract revenue, how shall the…

A: SOLUTION CONTRACT COST IS THE TRACKING OF  COSTS ASSOCIATED WITH A SPECIFIC CONTRACT WITH A CUSTOMER…

Q: The firm recognizes an expense when the following condition(s) hold(s):   Select one: A. The…

A: Introduction:- Generally expenses should be recognized in the same period as the revenues relating…

Q: TPPG Ltd is a telecommunications provider. On 1 January 2020, the company entered into a contract to…

A: a. Accordingly, the company is providing a 2 year contract to sell both the handset and the mobile…

Q: Calculate the amount of revenue to be recognized in 2020 and 2021. Calculate the construction costs…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: Explain an example of long-term construction contracts qualify for revenue recognition over time.

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Q: Required Compute the percentage of completion, gross profit and revenue to be recognised for each of…

A: AASB15 Revenue from contracts with customers is also applicable for construction contracts. The main…

Q: On January 1, 2020, an entity entered into a long term construction to be completed on June 30, 2020…

A: Solution: CONTRACT PRICE : CONTRACT PRICE TILL ON JUNE 2020 2,400,000 ADD:INCREASE IN CONTRACT…

Q: When an entity has a continuing policy of guaranteeing new products against defects for three years,…

A: Liability arising from the warranty which will be due within a year is reported under current…

Q: In 20x1, Devin Co. enters into a contract to construct a building for a customer. Devin Co.…

A: Comment; We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Any anticipated loss should be recognized * A.on a percentage basis during the contract period B.…

A: The amount of anticipated loss is calculated regardless of: (a) whether or not work on the contract…

Q: Customer X enters into a contract with Supplier Y for the use of a specific car for one year. The…

A: Lease is a type of contract in which the actual owner of the asset gives its asset for use to the…

Q: a) In your own words, explain how do we account for service costs included within a contract to…

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Q: es. Required:   What journal entries are necessary for Enterprise t

A: Journal entries are the initial recording of all the monetary business transactions in a systematic…

Q: A company is accounting for a long-term construction contract where revenue is recognized over time.…

A: Revenue Recognition A corporation should account for revenue as soon as it fulfils the contract's…

Q: On March 31, 20x1, ABC Company provides a license to DEF. Under the license agreement, DEF pays a…

A: Recognition of Revenue: Revenues should be  recognized on the income statement in the period  as and…

Q: Widjaja Company is accounting for a long-term construction contract using the…

A: a.   Company W should recognize revenue as it works in the contract (using the percentage of…

Q: Under PFRS 15, which of the following factors indicates that the revenue from contracts with…

A: Under IFRS 15  A performance obligation is on the seller or service provider who has an obligation…

Q: what si the amount of revenue from long-term contract for the year ended December 31,2022? what is…

A: Revenue recognition: Revenue recognition is the principle that provides specific conditions under…

Q: Show the complete solution On January 1, 2020, an entity entered into a long term construction to…

A: The contract refers to a legal commitment made between two or more people that defines the rules and…

Q: Identify the term being referred to: An agreement where one party conveys to the another party the…

A: The question contains an agreement between two parties . One party coveys the right to use the asset…

Q: In 20x1, Devin Co. enters into a contract to construct a building for a customer. Devin Co.…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: How much must be shown as current asset (cost of uncompleted contract in excess of billings) in the…

A: Current Assets are the group of assets held by the business or a company for the purpose of regular…

Q: When it is probable that total contract costs will exceed total contract revenue, how shall the…

A: IAS 11 prescribes the contractor’s accounting treatment of revenue and costs associated with…

Q: Companies may directly expense incremental costs for contracts where the amortization period would…

A: Introduction: Direct costs: Costs which are directly related to the product called direct cost.

Q: When it is probable that total contract costs will exceed total contract revenue, how shall it be…

A: Contract account is prepared when the work to be done take substantial time to make (generally more…

Q: The new standard, Revenue from Contracts with Customers, recognizes revenue based on a(n):…

A: Solution: The new standard, Revenue from Contracts with Customers "adopts an asset-liability…

Q: How should NEFRARIOUS account for the fixed consideration and the contract costs, respectively?

A: Contract is the agreement which is made between the parties whereby one party has agreed to provide…

Q: When products sold with a guarantee of free service or replacement during an extended warranty…

A: Introduction: Warranty: Warranty is given to the products. it can be free service or replacement of…

Q: Under PFRS 15, in which of the following instances will the revenue from contracts with customers be…

A: Revenue is the amount which has been earned by the company during the period from the core…

Q: Any of the following criteria is considered satisfaction by an entity of performance obligation over…

A: As per IFRS 15, An entity transfers control of a good or service over time and, therefore, satisfies…

Q: 15 Under physical capital maintenance assumption, a profit is earned only if the physical operating…

A: Physical capital of the business is composed of all objects that a company purchases in order to use…

Q: Assuming the requirements for recognizing revenue over time are met, the profit to be recognized in…

A: Under construction contract, the profit is recognised on the basis of the costs incurred during the…

Q: TPPG Ltd is a telecommunications provider. On 1 January 2020, the company entered into a contract to…

A: Revenue recognition as per IFRS 115 revenue of contracts with customers mandates that if there is…

Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the…

A: SOLUTION- PERFORMANCE OBLIGATION  IS A PROMISE TO DELIVER THE GOODS OR SERVICES IN LIEU OF PAYMENT…

Q: For contracts which are very near to completion, the profit is ascertained by the formula-

A: Every contract takes 2 to 5 years to complete. Actual profit can be calculated at the end of…

Q: On July 1, 20x1, ABC Construction Co. enters into contract with a customers for the construction of…

A: Contract Price= P60,00,000 Estimated Total Cost= P40,00,000 Actual cost Incurred=P10,20,000

Q: A. an agreement between a private sector entity and a contractor for the supply of goods or services…

A: Contractor  A contractor can be an individual or a company that will undertake to do specific work…