Triad plc has a 31 December year end. The company sells goods to a customer on 1 January 20X7 on the understanding that the customer will pay £5,000 immediately and will then pay two further instalments of £5,000 each on 1 January 20X8 and 1 January 20X9.

Required: LO6 Applying the provisions of IFRS 15 Revenue from Contracts with Customers, and assuming an effective interest rate of 10% p.a., calculate the amount of revenue that should be recognised in the years 20X7, 20X8 and 20X9, and the resulting accounting treatment of this transaction for the years ended 31 December 20X7, 20X8 and 20X9.