Question
On 1 November 2020, Logitech Sdn Bhd (Logitech) sells a tablet to Kenny for RM6,000. As part of this arrangement, Logitech gives Kenny a voucher.
On 1 November 2020, Logitech Sdn Bhd (Logitech) sells a tablet to Kenny for RM6,000. As part of this arrangement, Logitech gives Kenny a voucher. The voucher entitles Kenny to a 25% discount on any purchases up to RM2,000 in any Logitechs store during the next 60 days. The voucher can only be redeemed once. Logitech intends to offer a 10% discount on all sales to other customers during the next 60 days as its seasonal promotion. The 10% discount cannot be used in addition to the 25% discount voucher. Logitech estimates that there is an 80% likelihood that Kenny will redeem the voucher and will purchase additional products at a normal price of RM1,500. On 1 December 2020, Kenny purchased 2 pen tablets at a normal price of RM600 from a Logitechs store at Sunway City. Kenny redeemed the 25% discount voucher on 1 December 2020. Required: Discuss the correct accounting treatment for the recognition of revenue under the IFRS 15/ MFRS 15 Revenue from Contracts with Customer. (Note: Show all relevant journal entries in your discussion) (20 marks)
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