In 2019, ABC decided to improve sales by offering promotion. Customers pay $25 to play a room and then receive a coupon for $40% off their next visit. As at December 31, 2019, 60,000 coupons had been issued, and of those, 10,000 had been redeemed. DEF's experience with other entertainment-based business suggests that 30% of coupons get redeemed. ABC recorded the initial sale of $20. When customers redeemed a coupon, the sale was reported in the income statement net of the discount. I am not sure if the recording of revenue was recorded correctly with regards to the coupon and would like some guidance. What is the accounting issue/treatment? IFRS section b) During 2019, ABC facility rented by DEF for private parties at reduced rate, 200 people total paying $10 each instead of regular $25. These transactions have been recorded at the $10 received, but I wonder if that's correct amount to use as the rate was only provided because of ABC relationship with DEF. I would like to know what information needs to be disclosed in the financial statement notes with respect to these transactions. What is the accounting issue/treatment? IFRS section ABC Daft Income Statement For the year ended December 31, 2019 1,652,000 Sales Opearating Expenses Advertising Bank Charges Depreciation Licences for room Plans Office Renovations Salaries & Wages 277000 30000 90000 100000 90000 250000 590000 1427000 225,000 Net income before taxes In 2019, ABC decided to improve sales by offering promotion. Customers pay $25 to play a room and then receive a coupon for $40% off their next visit. As at December 31, 2019, 60,000 coupons had been issued, and of those, 10,000 had been redeemed. DEF's experience with other entertainment-based business suggests that 30% of coupons get redeemed. ABC recorded the initial sale of $20. When customers redeemed a coupon, the sale was reported in the income statement net of the discount. I am not sure if the recording of revenue was recorded correctly with regards to the coupon and would like some guidance. What is the accounting issue/treatment? IFRS section b) During 2019, ABC facility rented by DEF for private parties at reduced rate, 200 people total paying $10 each instead of regular $25. These transactions have been recorded at the $10 received, but I wonder if that's correct amount to use as the rate was only provided because of ABC relationship with DEF. I would like to know what information needs to be disclosed in the financial statement notes with respect to these transactions. What is the accounting issue/treatment? IFRS section ABC Daft Income Statement For the year ended December 31, 2019 1,652,000 Sales Opearating Expenses Advertising Bank Charges Depreciation Licences for room Plans Office Renovations Salaries & Wages 277000 30000 90000 100000 90000 250000 590000 1427000 225,000 Net income before taxes