Just before the end of the financial year, a customer requested Murray plc to delay the delivery of 500,000 units of products until early the following year because, at the time, the customer did not have enough space to store the goods. The customer, however, indicated to Murray that it could still issue the invoice as if the goods had been delivered at the date specified in the purchase order and he agreed to settle the amount within 90 days of the invoice date under the usual credit terms granted to him. Murray plc invoiced the customer before the year ended 31 December 20X8. LO6 Pinkerton plc operates a logistics company. Customers place their orders with the company for airfreight or surface transportation services required. Pinkerton, in turn, places its order with the necessary carriers. Pinkerton can cancel its order with the carrier if its customers cancel their orders with the company. Pinkerton does not bear the risk of loss or other responsibility during the transportation process. Pinkerton can normally earn a margin of 10% on airfreight and 5% on surface transportation. The company’s customers usually pay the gross amount to Pinkerton directly, while it pays the gross amount to the carriers.
Required:
Determine how the transactions of Murray plc and Pinkerton plc should be accounted for in accordance with IFRS 15 Revenue from Contracts with Customers in terms of the timing of recognition and the amounts to be included in their statements of profit or loss.