Assume Bombardier Inc. entered a contract with the Region of Waterloo to sell rapid-rail-transit vehicles to the Region. Sales price is $15 million, estimated costs are $11,550,000 and the expected delivery date is in 2017. The Region has an AA+ credit rating.

a. Identify, with reference to the Bombardier transaction, the five steps in the recognition process assuming Bombardier uses the asset and liability (contract) approach and follows IFRS 15

b. Identify the key criteria for revenue recognition assuming Bombardier uses the earnings approach (ASPE). Are there any differences in the two approaches?

c. Would your answer to part (a) above change if the contract with the Region includedvehicle maintenance fora five-year period after delivery? Explain.