1. How should the $25 Referral Credit be recorded in Runways Income Statementas 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?