QUESTION 2 (25 marks) Robin Limited is a company with a 31 December financial year-end. During the 2020 financial year, Robin Limited started a reward program to reward their loyal customers for shopping with them. You are provided with the following information on the company's reward program: Reward points are based on each customer's spending with the company. A customer receives one reward point for every R100 spent in-store. 100 Reward points can be redeemed for an R500 Robin Limited voucher. During the 2020 and 2021 financial years, customers on the reward program spent R5 220 000 and R6 987 000 in-store, respectively. For the 2020 points awarded, the following applied: 30% of the total points were redeemed by 31 December 2020. On 31 December 2020, management expected that 80% of the total . O O O O . points awarded for 2020 would be redeemed. 60% of the total points were redeemed by 31 December 2021. On 31 December 2021, management expected that 90% of the total points awarded for 2020 would be redeemed. For the 2021 points awarded, the following applied: 50% of the total points were redeemed by 31 December 2021. On 31 December 2021, management expected that 90% of the total points awarded for 2021 would be redeemed. The stand-alone selling price per reward point is R2.50. This price takes into account the likelihood of redemption of these reward points. O O REQUIRED: Prepare an extract from the Statement of Profit or Loss and Other Comprehensive Income of Robin Limited for the year ended 31 December 2021, indicating the revenue figure recognised. Comparative amounts are required. (25 marks) QUESTION 2 (25 marks) Robin Limited is a company with a 31 December financial year-end. During the 2020 financial year, Robin Limited started a reward program to reward their loyal customers for shopping with them. You are provided with the following information on the company's reward program: Reward points are based on each customer's spending with the company. A customer receives one reward point for every R100 spent in-store. 100 Reward points can be redeemed for an R500 Robin Limited voucher. During the 2020 and 2021 financial years, customers on the reward program spent R5 220 000 and R6 987 000 in-store, respectively. For the 2020 points awarded, the following applied: 30% of the total points were redeemed by 31 December 2020. On 31 December 2020, management expected that 80% of the total . O O O O . points awarded for 2020 would be redeemed. 60% of the total points were redeemed by 31 December 2021. On 31 December 2021, management expected that 90% of the total points awarded for 2020 would be redeemed. For the 2021 points awarded, the following applied: 50% of the total points were redeemed by 31 December 2021. On 31 December 2021, management expected that 90% of the total points awarded for 2021 would be redeemed. The stand-alone selling price per reward point is R2.50. This price takes into account the likelihood of redemption of these reward points. O O REQUIRED: Prepare an extract from the Statement of Profit or Loss and Other Comprehensive Income of Robin Limited for the year ended 31 December 2021, indicating the revenue figure recognised. Comparative amounts are required. (25 marks)
