a) During a home design and interior exhibition, an exhibitor received deposits for branded kitchen hoods to be installed in new houses upon completion of house renovation. The installation dates could not be confirmed during the exhibition period.

Required:

Determine when revenue should be recognised by the exhibitor in accordance with IFRS 15. (4 marks)

b) A retailer regularly sells Products P, Q and R at stand-alone selling prices of RM200, RM180 and RM150 respectively. It enters into a contract to sell Products P, Q and R together for RM500.

Required:

Allocate the contract price of RM500 to Products P, Q and R assuming there is no observable evidence to suggest that the discount relates entirely to one or two of the three products. (6 marks)

c) A construction contractor entered into a 3-year contract with a customer on 23 October 2019. The contract is treated as a single performance obligation, to be satisfied over time. The percentage of completion is determined using the input method. The following information relates to the contract as at 31 December 2020: RM Contract price 370,000 Costs incurred to date 174,000 Estimated costs to completion 116,000 Progress billings to date 220,000 During the year ended 31 December 2019, the contractor had recognised revenue of RM50,000 and profit of RM10,000 from this contract.

Required:

Applying IFRS 15, calculate the contract profit to be recognised for the year ended 31 December 2020.