{"text_format":"2","workbook":"xlsx","n_sheets":6,"sheets":["Illustration 1","Question 1","Answer 1","Discount","Example -Variable consideration","Vodacom"],"not_rendered":{"charts":0,"images":6,"macros":0,"external_links":0,"defined_names":0,"comments":0,"pivot_tables":0},"unopened":[],"bounds":{"document_bytes":16777216,"sheet_cells":100000,"run_cost":"one","rows_first":2000,"rows_last":500,"rows_between":2000,"halvings":0,"cell_chars":16384,"cell_head_chars":4096},"cells_cut":0,"cells_raw":0,"read":"whole","date_system":"1900"}

{"sheet":"Illustration 1","index":0,"n_rows":96,"n_cols":16,"rows_kept":96,"cut":false,"hidden":false,"merged":[]}
{"$rows_empty":12}
[null,"Step 1: Identify the contract"]
[]
[null,"A contract is assumed to exist"]
[]
[]
[null,"Step 2: Identify the P.O"]
[]
[null,"PO 1","Wireless tariff plan"]
[null,"PO 2","Samsung Galazy Note 8"]
[null,"PO 3","Customer Options for additional goods/service (IFRS 15 App B40)"]
[]
[]
[null,"Step 3: Determine transaction price"]
[null,"Item",null,null,"USD"]
[null,"Note 8",null,null,749.99]
[null,"Wireless tarrif plan (60 x 12 x 2)",null,null,{"$f":"60*12*2","v":1440}]
[null,"Activation (IFRS 15.25)",null,null,25]
[null,"Less credit (subject to IFRS 15. P. 56 constraining estimates)",null,null,-100]
[{"$nulls":4},{"$f":"SUM(E27:E30)","v":2114.9899999999998}]
[]
[null,"Step 4: Alloate transaction price to performance obligation"]
[{"$nulls":14},"USD"]
[null,"Item",null,"RSASP","Ratio","Revenue","Time of recognition",{"$nulls":6},"Note 8",760]
["P.O 1","Wireless tariff",null,{"$f":"O36*12*2","v":1440},{"$f":"D36/$D$39","v":0.64719101123595502},{"$f":"E36*E31","v":1368.8025168539323},"Over 24months",{"$nulls":6},"Tariff",60,"p.m"]
["P.O 2","Samsung Note8",null,{"$f":"O35","v":760},{"$f":"D37/$D$39","v":0.34157303370786518},{"$f":"E37*E31","v":722.4235505617977},"Upon transfer of control",{"$nulls":6},"Activation",25]
["IFRS 15.B49","Activation fee",null,25,{"$f":"D38/$D$39","v":1.1235955056179775E-2},{"$f":"E38*E31","v":23.763932584269661},"Oveer 24 months"]
[null,null,null,{"$f":"SUM(D36:D38)","v":2225},{"$f":"SUM(E36:E38)","v":1},{"$f":"SUM(F36:F38)","v":2114.9899999999998}]
[]
[]
[]
[null,"Step 5: Revenue recognition when/as performance obligation is satisfied"]
[]
[null,"Upon receipt of the money"]
[null,"Dr: Cash (Note8 + Activation fee)",null,{"$f":"749.99+25","v":774.99}]
[null,"Cr: Contract liability",null,null,{"$f":"D46","v":774.99}]
[]
[null,"For Samsung Note 8"]
[null,"Dr: Contract liability",null,{"$f":"F37","v":722.4235505617977}]
[null,"Cr: Revenue from sales of goods (IFRS 15 Appendix B89)",null,null,{"$f":"D50","v":722.4235505617977}]
[]
[null,"Wireless tarrif (monthly)"]
[null,"Dr: Contract assets",{"$f":"F36/24","v":57.033438202247176}]
[null,"Cr: Revenue from tarrif",null,{"$f":"C54","v":57.033438202247176}]
[]
[null,"Upon payment (assuming monthly)"]
[null,"Dr: Cash",60]
[null,"Cr: Contract assets",null,{"$f":"C54","v":57.033438202247176}]
[null,"Cr: Contract liability",null,{"$f":"C58-D59","v":2.9665617977528242}]
[]
[null,"Activation fees (monthly)"]
[null,"Dr: Contract liability",{"$f":"F38/24","v":0.99016385767790249}]
[null,"Cr: Revenue from tarrif",null,{"$f":"C63","v":0.99016385767790249}]
[]
[]
[null,"Assuming contract was signed in January 2019 and year end is December 2019, hypothetical extract of F.S. would look like"]
[null,"Revenue"]
[null,"Sales of goods",{"$f":"E51","v":722.4235505617977}]
[null,"Rendering of service",{"$f":"($D$64+$D$55)*12","v":696.28322471910087}]
[null,null,{"$f":"SUM(C69:C70)","v":1418.7067752808985}]
[]
[null,"Contract liability",{"$f":"D60*12+E47-D50-C63*12+100","v":176.28322471910133}]
[null,"Analysis"]
[null,"Initial measurement",{"$f":"E47","v":774.99}]
[null,"Less Note8 realization",{"$f":"-D50","v":-722.4235505617977}]
[null,"Less Activation fee amortization",{"$f":"-$C$63*12","v":-11.88196629213483}]
[null,"Excess of monthly payment over",{"$f":"$D$60*12","v":35.598741573033891}]
[null,"monthly revenue from tariff"]
[null,null,{"$f":"SUM(C75:C78)","v":76.283224719101369},"Please note that this figure includes the USD100 credits right to the customer"]
[]
[]
[null,"Year 2020 Extract"]
[null,"Revenue"]
[null,"Sales of goods",0]
[null,"Rendering of service",{"$f":"($D$64+$D$55)*12","v":696.28322471910087}]
[null,null,{"$f":"SUM(C85:C86)","v":696.28322471910087}]
[]
[null,"Contract liability",{"$f":"C95","v":100.00000000000043}]
[null,"Analysis"]
[null,"Opening balance",{"$f":"C80","v":76.283224719101369}]
[null,"Less Activation fee amortization",{"$f":"-$C$63*12","v":-11.88196629213483}]
[null,"Excess of monthly payment over"]
[null,"monthly revenue from tariff",{"$f":"$D$60*12","v":35.598741573033891}]
[null,null,{"$f":"SUM(C91:C94)","v":100.00000000000043},"This is the USD100 credit right to the customer to be appied to any future reduction in future discounted granted the customer."]
[null,null,null,"The need to constrain this figure should also be considered based on IFRS 15.56"]

{"sheet":"Question 1","index":1,"n_rows":26,"n_cols":2,"rows_kept":26,"cut":false,"hidden":false,"merged":[[25,1,26,13]]}
{"$rows_empty":25}
[null,"Discuss the issues  Wader must consider when accounting for revenue from the contract with Vehiclex and the cost of constructing the  machine required to fulfil the contract"]

{"sheet":"Answer 1","index":2,"n_rows":0,"n_cols":0,"rows_kept":0,"cut":false,"hidden":false,"merged":[]}

{"sheet":"Discount","index":3,"n_rows":13,"n_cols":1,"rows_kept":13,"cut":false,"hidden":false,"merged":[[2,0,4,13],[6,0,7,13],[9,0,10,13],[12,0,13,13]]}
["Illustration 2"]
[]
["Bellway has a contract to supply components to a customer on a monthly basis. The contract price of $6 per unit is reduced to $5 per unit if the customer orders more than 10,000 units during the calendar year."]
[]
[]
[]
["The customer ordered 1,200 units in the month of January. Bellway has significant experience with this product and the purchasing patterns of this customer. Bellway estimates that the customer's purchases will exceed the 10,000-unit threshold and concludes that it is highly probable that a significant reversal in the amount of revenue recognised will not occur when the total amount of purchases by the customer is known at year end."]
[]
[]
["Bellway will recognise revenue of $6,000 (1,200 units × $5 per unit) for the goods sold in January, as this is the most likely outcome for the year."]
[]
[]
["If at any time during the year it appears that the total number of units ordered for the year will be less than 10,000, Bellway should change the amount of revenue previously recognised to reflect the higher (non-discounted) price."]

{"sheet":"Example -Variable consideration","index":4,"n_rows":0,"n_cols":0,"rows_kept":0,"cut":false,"hidden":false,"merged":[]}

{"sheet":"Vodacom","index":5,"n_rows":0,"n_cols":0,"rows_kept":0,"cut":false,"hidden":false,"merged":[]}