Can I get some assistant with the Solution to the question below please

Question 4

Company Alpha has entered into a contract to provide accountancy tuition services to one of the big 4 accountancy firms, to help students pass their Chartered Accountancy exams. The agreement states that the basic price of the contract is 2mn. However, the company will be eligible for a bonus of 20% of the contract price if 80% of the students pass their exams; 10% if 70% pass; while if fewer than 60% pass, Alpha will suffer a penalty of 10% of the contract price (or a 20% penalty if the pass rate is less than 50%).

Alpha is currently preparing its accounts for y/e 30 April 2018. The students have all sat their exams but the results will not be known until after the accounts have been published. Based on the mock exams, Alpha estimates that the likelihood of the different pass rates is as follows:

Pass Rate Likelihood

80% or more 20%

70-80% 30%

60-70% 20%

50-60% 20%

Less than 50% 10%

Calculate the amount of revenue Alpha should recognise for this contract in its accounts for the y/e 30 April 2018. Explain your workings in the context of IFRS 15.

(10 marks)