Fit Ltd, a fitness centre located in Auckland enters into one year contracts with customers to access any of its facilities for $1,300. Fit Ltd also charges a $50 non-refundable joining fee for the initial activities of registering the customer. The contract has two performance obligations; access to facilities and registration. This statement is; Select one: True False

If the agreed date of payment by a customer is later than the date on which goods or services are provided to a customer, part of the consideration should be treated as interest revenue (not sales revenue)? (sales under the promotional arrangement to a long-term customer)

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False

Question 22

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The difference between the carrying amount of an asset or liability in the balance sheet and its tax base is a temporary difference.

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Abba Ltd sells outdoor furniture across New Zealand. During the year Abba Ltd sold one of the machines which is no longer usable for $5,000. Abba should recognise $ 5,000 as revenue for the period. This statement is;

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As per NZ IFRS 15-Revenue from Contracts with Customers, a customer can buy a warranty separately. If that warranty provides an additional service to a customer, the warranty is identified as a service type of warranty. Service type warranties give rise to a separate performance obligation. This statement is;

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Question 25

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Fit Ltd, a fitness centre located in Auckland enters into one year contracts with customers to access any of its facilities for $1,300. Fit Ltd also charges a $50 non-refundable joining fee for the initial activities of registering the customer. The contract has two performance obligations; access to facilities and registration. This statement is;

Select one:

True

False