On December 1, 2019, Quebec Consulting Ltd. signed a contract with Kellet Inc., which obligated Quebec to provide Kellet with 12 hours of consulting services per month from January through December of 2020. The contract requires Kellet to pay a total of $43,200 for these services, with payments of $3,600 due at the end of each month. Quebec has provided similar services to Kellet 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 Quebec 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. Quebec satisfy this criteria as it ASPE Step 2. The amount of revenue to be received can be reliably measured. Quebec will receive $ per hour for consulting services provided. ASPE Step 3. It is probable that the customer will pay for the goods or services when payment becomes due. each time it provides Kellet with of Kellet has always paid Quebec on a timely basis, so it is probable they will pay their bill as it comes due each month. Quebec can recognize revenue 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 between Quebec and Kellet specifies that Quebec will provide hours of consulting per month in 2020 for a total price of $ Kellet has always paid Quebec on a timely basis, so their bill as it comes due each month. IFRS Step 2. Identify the separate performance obligations in the contract. Each hour of consulting can be considered so there are separate obligations in the contract. IFRS Step 3. Determine the transaction price. The transaction price is $ IFRS Step 4. Allocate the transaction price to the separate performance obligations in the contract. The total transaction price of $ allocated across the obligated hours yields a price per hour of $ IFRS Step 5. Recognize revenue when (or as) the business satisfies each performance obligation. Quebec can recognize revenue of $ each time it provides Kellet with of consulting services in 2020. On December 1, 2019, Quebec Consulting Ltd. signed a contract with Kellet Inc., which obligated Quebec to provide Kellet with 12 hours of consulting services per month from January through December of 2020. The contract requires Kellet to pay a total of $43,200 for these services, with payments of $3,600 due at the end of each month. Quebec has provided similar services to Kellet 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 Quebec 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. Quebec satisfy this criteria as it ASPE Step 2. The amount of revenue to be received can be reliably measured. Quebec will receive $ per hour for consulting services provided. ASPE Step 3. It is probable that the customer will pay for the goods or services when payment becomes due. each time it provides Kellet with of Kellet has always paid Quebec on a timely basis, so it is probable they will pay their bill as it comes due each month. Quebec can recognize revenue 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 between Quebec and Kellet specifies that Quebec will provide hours of consulting per month in 2020 for a total price of $ Kellet has always paid Quebec on a timely basis, so their bill as it comes due each month. IFRS Step 2. Identify the separate performance obligations in the contract. Each hour of consulting can be considered so there are separate obligations in the contract. IFRS Step 3. Determine the transaction price. The transaction price is $ IFRS Step 4. Allocate the transaction price to the separate performance obligations in the contract. The total transaction price of $ allocated across the obligated hours yields a price per hour of $ IFRS Step 5. Recognize revenue when (or as) the business satisfies each performance obligation. Quebec can recognize revenue of $ each time it provides Kellet with of consulting services in 2020