q62 relate to continuing obligations or services should normally be recognised over the life of the loan or facility having regard to the amount of the obligation outstanding, the - nature of the services provided and the timing of the costs relating thereto. 4. Admission fees Revenue from artistic performances, banquets and other special events should be recognised when the event takes place. When a subscription to a number of events is sold, the fee should be allocated to each event on a systematic and rational basis. 5. Tuition fees Revenue should be recognised over the period of instruction. 6. Entrance and membership fees. Revenue recognition from these sources will depend on the nature of the services being provided. Entrance fee received is generally capitalised. If the membership fee permits only membership and all other services or products are paid for separately, or if there is a separate annual subscription, the fee should be recognised when received. If the membership fee entitles the member to services or publications to be provided during the year, it should be recognised on a systematic and rational basis having regard to the timing and nature of all services provided. Illustration 1. Good Pictures Ltd. construct a cinema house which became operational on 1st January, 2009, and incur the following expenditure during the first year ending 31st March, 2009: (1) Second-hand furniture worth *90,000 was purchased; repairing of the furniture cost 10.000. The furniture was installed by own workmen-wages for this being 2,000. (2) Expenses in connection with obtaining a licence for running the cinema were 30,000. During the course of the year, the cinema was fined 500 for contravening rules. Renewal fee, 750, for next year was also paid. (3) Fire insurance, 12,000 was paid on 1st October, 2008 for one year. (4) Temporary huts were constructed costing 12,000. These were necessary for the construction of the cinema and were demolished when the cinema was ready. (5) During the first week of the cinema's running, free tickets were distributed. These numbered 4,000, the average value being 60 per ticket (6) A sum of 75,00,000 was spent on the hall in all: of this 50,00,000 was borrowed on 1st April. 2008 @ 20% p.a. Half the amount was repayable on 31st March, 2010 and the remaining amount on 31st March, 2011. Point out how you would classify the above items