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In each of the following situations, state at which date(s), if any, revenue will be recognised. A contract for the rendering of services is entered
In each of the following situations, state at which date(s), if any, revenue will be recognised.
- A contract for the rendering of services is entered into on 1 May 2023. The services are delivered on 15 May 2023. The buyer pays for the services on 30 May 2023.
- A contract for the rendering of services is entered into on 1 May 2023. The services are delivered continuously over a 1year period commencing on 15 May 2023. The buyer pays for all the services on 30 May 2023.
- A contract for the rendering of services is entered into on 1 May 2023. The services are delivered continuously over a 1year period commencing on 15 May 2023. The buyer pays for the services on a monthly basis, commencing on 15 May 2023.
- Lemon Ltd is an insurance agent and provides insurance advisory services to Customer B. Lemon Ltd receives a commission from insurance company Ibis Ltd when Lemon Ltd places Customer B's insurance policy with Ibis Ltd, on 1 April 2023. Lemon Ltd has no further obligation to provide services to Customer B.
- Lemon Ltd is an insurance agent and provides insurance advisory services to Customer B. Lemon Ltd receives a commission from insurance company Ibis Ltd when Lemon Ltd places Customer B's insurance policy with Ibis Ltd, on 1 April 2023. Lemon Ltd is required to provide ongoing services to Customer B until 1 April 2024. Additional amounts are charged for these services. All amounts are at market rates.
- Citrus Ltd receives a nonrefundable upfront fee from Customer B for investment advice, on 1 March 2023. Under the agreement with Customer B, Citrus Ltd must provide ongoing management services until 1 March 2024. An additional amount is charged for these services. The upfront fee is higher than the market rate for equivalent initial investment advice
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