Identify when the revenue, if indeed there is any, in the following transactions should be recognized in accordance with IAS 18, Revenue.
(a) Land has been sold by A entity to Connect Housing Association entity for £1m unconditionally and irrevocably with contracts exchanged. £0.6m of the consideration is payable after six months, and £0.4m 12 months after As year-end. Connect is expecting to build apartments on the land and the project is likely to receive lottery funding although this is not guaranteed. The uncertainty over the funding is the reason Connect has agreed delayed payment.
(b) B entity rents cars to 'not own fault' accident victims. The rental for such cars is billed to the insurance company of the fault driver. Negotiations then take place between B and the insurance company as to how much of the charge for the rental car will be paid.
(c) Zentity, a broadband network provider, supplies equipment and a maintenance service to its customers at a charge of £216 p.a. The price of the maintenance service is £160 p.a. and the cost of the equipment £80 if purchased separately.
(d) Ventity sells motorboats for £50 000 each. The company also provides moorings at £5000 p.a. to customers. If a customer buys the boat and mooring package together, he is given a 5% discount on the cost of the total package. The normal profit on the boat is 25% and the moorings 50% to V.
(e) A law firm provides services to defendants on a no-win/no-fee basis. Lawyers' fees are nor¬mally charged on a time basis and fees are billed monthly.
(f) A entity sells materials for making doors to two manufacturers, Xand V, who assemble the frames and put glass in the doors. A receives the doors back from Xand Vand sells them to a builder for installation in homes. The precise details of the sale of materials to Xand Y are as follows:
• Xbuys the materials at £10 per door from A without any guarantee that A will purchase the assembled doors; Xbuys materials for assembly from other manufacturers; no price for the purchase of the doors by A is agreed on the sale of materials to X.
• /buys the materials from A, which cost A £5, at £10 per door; A agrees to buy the finished doors back from Vat £50.
(g) Keepfit pic operates gyms that charge a joining fee of £250. This fee entitles members to life membership. In addition, members pay £6 per session. Non-members can use the gym at £8 per session. Historical records indicate that members use the gym about 50 times per year and that they hold membership for two years.
(h) Lowds pic manufactures and sells caravans. When a customer orders a caravan, an advance payment of 10% of the sale price is required. In most cases orders are taken for caravans that are not yet completed.
(i) A university collects fees from its students at the beginning of the academic year in which
the student enrols for the whole of their course. The course may last from one to three
years.