Gold Hotels Limited is a small discount hotel chain, owning 20 hotels in the South of England. Each hotel has on average 100 rooms, and during 2018, Gold Hotels achieved an occupancy rate of about 70%. In total, Gold Hotels sold 500,000 room-nights (a "room-night" represents the sale of one room for one night), at an average price of 46.20 per room-night. At the beginning of 2018, Gold Hotels introduced a loyalty scheme. Members of the scheme earn one point for each room-night purchased, and they can convert ten points into a free room-night (the points have no cash value and cannot be used for any other purpose). During 2018, scheme members earned a total of 200,000 points, and used some of these points to purchase 4,000 room-nights. The remaining points are carried forward, and can be used at any time within 24 months of their original issue date. Other hotels with similar loyalty schemes have found that, on average, half of the points issued expire without having been used. Gold Hotels prepares its financial statements for accounting periods ending on 31 December, and has adopted International Financial Reporting Standard 15 Revenues from Contracts with Customers (IFRS 15). Required:

(a) Calculate, and explain clearly, the revenue that Gold Hotels Limited should include in its income statement for the year ended 31 December 2018 in respect of room-nights. (18 marks)

(b) "One of the most common ways of managing earnings is through managing revenues, and this can be achieved through manipulating the timing of both real transactions and revenue recognition. IFRS 15 has limited the abuse of accounting earnings management, but does nothing to control real earnings management." Comment critically on this statement.