Topic: REVENUE FROM CONTRACTS WITH CUSTOMERS Requirements:a. Identify the performance obligations in the contracts.b. How should the entity recognize revenue from the contract? (State also the timing of revenue recognition for each identified performance obligation.) Requirements:a) Identify the performance obligations in the contracts.b) How should the entity recognize revenue from the contract?(State also the timing of revenue recognition for eachidentified performance obligation.)nontract to clean 9. An entity enters into a contract with a customer on 1 January20X8 for the sale of a machine and spare parts. Themanufacturing lead time for the machine and spare parts istwo years.Upon completion of manufacturing, the entity demonstrates thatthe machine and spare parts meet the agreed-upon specificationsin the contract.On 31 December 20X9, the customer pays for the machine andspare parts, but only takes physical possession of the machine.Although the customer inspects and accepts the spare parts, thecustomer requests that the spare parts be stored at the entity'swarehouse because of its close proximity to the customer'sfactory. The customer has legal title to the spare parts and theparts can be identified as belonging to the customer. Furthermore,the entity stores the spare parts in a separate section of itswarehouse arnd the parts are ready for immediate shipment at thecustomer's request. The entity expects to hold the spare parts fortwo to four years and the entity does not have the ability to usethespare parts or direct them to another customer.

The core principle of IFRS 15 is that revenue is recognised when the goods or services are…

Answered: Topic: REVENUE FROM CONTRACTS WITH…

Topic: REVENUE FROM CONTRACTS WITH CUSTOMERS Requirements: a. Identify the performance obligations in the contracts. b. How should the entity recognize revenue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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