1. How should the $25 Referral Credit be recorded in Runway's Income Statement as a reduction of revenue or as a marketing expense?
2. When would Runway record the $25 Referral Credit? What are the entries Runway would record when the $25 Referral Credit is earned by the Existing Customer? What are the entries Runway would record when the $25 Referral Credit is redeemed against a $100 purchase made by the Existing Customer?
3. Runway is planning to adopt IFRS sin the near future. What is the relevant accounting guidance they would follow under IFRSs?