Master Accounting and Audit - University of Luxembourg -2021 - IFRS Case study 1- LILA On 1 January 2019, LILA Ltd entered into an agreement with GREEN Ltd to develop n software for GREEN Ltd. The agreement states that the total consideration to be paid for new software development will be 900 K. LILA Ltd expects that its total costs for this will be 700 K. As at December 31, 2019, (Yearend closing date) LILA had incurred labour costs of 385 KE. As at October 1st, 2019, GREEN Ltd had made a first payment of 500 K. a) Explain how Lila should apply those criteria in order to recognise the reven regarding this agreement b) Please show all the accounting entries in LILA Ltd that should be book during 2019. Exercices -1