Q1. A patience sued XYZ Company for negligence claiming compensation of GHC 500,000 in October 2019 and the court processes were in progress as at the end of 2019. On 31st December, 2020, the court ruled in favour of the patient. In reference to IAS 10, explain how this event could be accounted for in the 2019 financial statements. Q2. A 2-year motor vehicle of Sankofa Ltd which was in existence as at 31st December 2018 was involved in serious motor accident and was burnt to ash on 25th January, 2020. In reference to IAS 10, explain how this event could be accounted for in the 2019 financial statements IAS 18: REVENUE Q1. Under the terms of arrangement that Ahodwo Limited has with a customer, the customer gets a 2% discount on the total purchases that they make over a 12month period, provided the total purchases exceed GHC 1 million per year. During the 9 month financial period from April 1, 2013, to December 31, 2013, the sales to the customer were GHC 900,000. How much revenue should Ahodwo Limited recognize? Q2. Total Sales of a company included a sum of GHC 183 million representing royalties receivable for supply of know-how to a company in Nigeria. According to the royal agreement, the amount is to be received in US Dollars. However, exchange permission was denied to the company in Nigeria for remitting the same. How should this be treated in the books? Q3. Alavanyo Publication Ltd has received 200,000 subscriptions during the current year under its new scheme whereby customers are required to pay a sum of GHC 50, for which they will be entitled to receive Lifestyle magazine for a period of 2 years. Can Alavanyo Publication treat the entire amount as revenue for the current year?