conceptual frame work

You are an associate at the audit firm Olive \& Partners. One of your biggest clients is of its strategy. Delicious Enodits innovative strategy As part of its strategy. Delicious Food Limited offers customers a wide variety of services, including daily delivery of meals at no cost around the city, customers may choose from a wide variety of meal options or customised meals as per customer dietary specifications. By doing this, the company offers customers an incentive to enjoy daily customised meals in the comfort of their homes or offices. comfort of their homes or offices. with the corvice, customers are required to enter into a three year membership contract fee of NS1 200 . The terms of the contract requires that customers pay a membership access to the company's payable quarterly in advance. In return customers obtain membership and to enjoy the benefits as per the contrat e.g. daily, the right to the free delivery etc. During the audit, you discovered that the company's accounting policy is to recognise membership fees as income on receipt of the fee from a member. Its draft financial Statements for the year ended 30 June 2022 classify the full amount of NS 500000 membership fees received in cash from customers during the year as income An analysis of the membership fees received during the year shows the following: Required: Discuss how Delicious Food Limited should account for the cash received frt customers in its financial statements for the year ended 30 June 2022. Justify your answer with reference to the relevant definitions and recognition criterit the Conceptual framework