Exam 4: Revenue

Which of the following disclosures are required under IAS 18? I total income, allocated between revenue and other gains II the accounting policies adopted for revenue recognition III the amount of each significant category of revenue recognised during the period IV the amount of revenue arising from exchanges of goods and services.

The Appendix to IAS 18 contains illustrative examples which:

When consideration is deferred and there is a below-market rate of interest charged the fair value of the consideration should be determined:

The following information relates to questions 16 and 17 TelCo provides a bundled service offering to a customer for $3000 upfront. The services provided are as follows: Upfront advice 'on-call' advice Database access for a 2-year period If TelCo were to charge a separate fee for each service if sold separately the fee would be: Up-front advice $200 On-call advice $2600 Database access $800 -The revenue that would be recorded by TelCo at the inception of the agreement is:

Deefer Limited sold an item of machinery on 1 July 2014 on the following terms: Initial payment of $25 000 Annual payments of $25 000 for 5 years (total $125 000). The buyers incremental rate of interest is 7.5% and the present value of the future annual payments is $101 147. At the time of sale of the machine Deefer would recognise revenue of:

Which of the following is NOT excluded from the scope of IAS 18 Revenue?

Special Limited is in the business of producing and distributing special screenings on various topics. On 1 January 2014, Special granted a license to TV 101 for $250 000 in relation to a special titled "The Big Ice". The following conditions were attached to the license: TV 101 was allowed to show the special once only within the 2014 calendar year. TV 101 could choose the date and time of the screening. The documentary was delivered to TV 101 on 1 January 2014. TV 101 screened the documentary on 30 March 2014. The $250 000 fee was paid to Special on 30 March 2014. Special should recognise revenue as follows:

Which of the following is NOT a condition that needs to be satisfied prior to recognising revenue from the rendering of services using the 'percentage of completion' method?

The IASB/FASB Exposure Draft titled Revenue from Contracts with Customers is inconsistent with the principles within which of the following?

Which of the following is incorrect in relation to consignment sales?

Which of the following events took place in December 2008?

Big Bank Limited provides Good Sport Pty Ltd with a five-year loan to finance the construction of a new sporting stadium. Good Sport had the choice of paying a market rate of interest (7.5% at the inception of the loan) or paying interest at a rate of 1.5% below the market rate, and paying in addition a fixed 'arrangement fee' of $200 000 to compensate Big Bank for charging an interest rate below the fair market value. Good Sport chose the second option. Big Bank should recognise revenue from the arrangement fee as:

Under IAS 18 interest revenue is recognised as follows:

Which of the following are excluded from the scope of IAS 18? I the initial recognition of agricultural produce II insurance contracts within the scope of IFRS 4 III the extraction of mineral ores IV lease agreements

In terms of revenue related disclosures on the face of the statement of profit or loss and other comprehensive income:

Which of the following is NOT an example of an agency arrangement where the selling entity would recognise revenue on a net basis?

The two elements of performance referred to in the Conceptual Framework are:

The effect that IFRIC Interpretation titled Agreements for the Construction of Real Estate will have the following effect for entities that undertake off-the-plan real estate sales is that:

On 1 January 2014 ABC Ltd sold goods to ZZZ Pty Ltd for a total price of $1 000. Under the terms of the sale ZZZ is able to return the goods within five days of delivery. On 3 January 2014 ZZZ returned 30% of the goods. ABC would recognise revenue as follows:

House Proud Pty Ltd is operating a promotion selling furniture under the following conditions:  Initial deposit of 20% of purchase price.  Immediate delivery of furniture.  Interest rate of 12.5%pa charged on the outstanding balance.  Repayment of the balance (including the interest) over 24 equal monthly instalments.  House Proud retains legal title to the furniture until the final monthly payment has been made. House Proud would recognise revenue as follows: