K On December 1, 20X1, Wentworth Consulting Ltd. signed a contract with Tavistock Inc., which obligated Wentworth to provide Tavistock with 16 hours of consulting services per month from January through December of 20X2. The contract requires Tavistock to pay a total of $76,800 for these services, with payments of $6,400 due at the end of each month. Wentworth has provided similar services to Tavistock in the past and has always collected its fees on a timely basis. Requirement Using IFRS and ASPE revenue recognition standards as a guide, determine how Wentworth Consulting Inc. would recognize revenue from this transaction under both ASPE and IFRS. ASPE Step 1. The ownership (or control) and benefits of the goods have been transferred to the customer, or the services have been provided to the customer. satisfy this criteria as it ASPE Step 2. The amount of revenue to be received can be reliably measured. Amount Wentworth will receive for each hour of consulting services provided: Wentworth ASPE Step 3. It is probable that the customer will pay for the goods or services when payment becomes due. Tavistock has always paid Wentworth on a timely basis, so it is probable Tavistock will pay the bill as it comes due each month. Wentworth can recognize revenue of each time it provides Tavistock with of consulting services. IFRS Step 1. Identify the contract with the customer, specify its terms, and evaluate the probability the customer will pay the transaction price when it becomes due. The contract is between Wentworth and Tavistock for 20X2. Identify the terms as follows:

On December 1, 20X1, Wentworth Consulting Ltd. signed a contract with Tavistock Inc., which obligated Wentworth to provide Tavistock with 16 hours of consulting services per month from January through December of 20X2. The contract requires Tavistock to pay a total of $76,800 for these services, with payments of $6,400 due at the end of each month. Wentworth has provided similar services to Tavistock in the past and has always collected its fees on a timely basis. Requirement Using IFRS and ASPE revenue recognition standards as a guide, determine how Wentworth Consulting Inc. would recognize revenue from this transaction under both ASPE and IFRS. ASPE Step 1. The ownership (or control) and benefits of the goods have been transferred to the customer, or the services have been provided to the customer. Wentworth satisfy this criteria as it ASPE Step 2. The amount of revenue to be received can be reliably measured. Amount Wentworth will receive for each hour of consulting services provided: ASPE Step 3. It is probable that the customer will pay for the goods or services when payment becomes due. Tavistock has always paid Wentworth on a timely basis, so it is probable Tavistock will pay the bill as it comes due each month. Wentworth can recognize revenue of each time it provides Tavistock with of consulting services. IFRS Step 1. Identify the contract with the customer, specify its terms, and evaluate the probability the customer will pay the transaction price when it becomes due. The contract is between Wentworth and Tavistock for 202. Identify the terms as follows