The following independent situations require professional judgement for determining when to recognize revenue from the transactions.

1. Air Yukon sells you an advance purchase airline ticket in September for your flight home at Christmas.

2. Better Buy Ltd. sells you a home theatre on a “no money down, no interest, and no payments for one year” promotional deal.

3. The Centurions baseball team sells season tickets to games online. Fans can purchase the tickets at any time, although the season doesn’t officially begin until April. It runs from April through October.

4. River’s End Ltd. sells you a sweater. In August, you placed the order using River’s End’s online catalogue. The sweater arrives in September and you charge it to your River’s End credit card. You receive and pay the credit card bill in October.

Instructions

a. Explain when revenue is recognized in each of these situations under ASPE.

b. Identify when revenue should be recognized in each of the situations under the IFRS 15 model.