QUESTION 3 35 Marks Mara Travel influencers has entered into a social media influencer partnership with Namibian Amazing views group as an influencer to market the lodges of the travel company situated at all of the 13 regions of Namibia. Both parties have signed an unamendable agreement. On the 1" of January 2020 the terms of the partnership are as follows: -Mara is to visit all of the lodges under the Namibian Amazing views group. -While at the lodge, Mara is to take pictures of the lodge and post on her social media platforms. -Mara is to film a YouTube video of the lodges, touring the lodge and the activities available at the lodge as well as giving an overall review of the lodge, customer service and the experience. Should Mara not visit the lodge, she may request pictures and videos of the lodge from the marketing team to post to her social media platform. Namibian Amazing views is to make the following payments to Mara Travel Influencers upon completion of the tasks required above: -An upfront payment of N$20 000 paid upon signing of the agreement. This payment is to be refunded by Mara, should she fail to visit all the lodges of the group. -Each visit to the lodge NS5000. -Each picture posted on social media N$50. - Additional NS50 per picture with more than 50 000 likes. - Each video of the lodges posted on YouTube N$200 - Additional NS200 for every 100 000 views -Accommodation at an average of NST 000 per lodge Page 13 of 21 - Breakfast, dinner and lunch to the value of N$1000 per lodge -Lodging activities to the value of N51000 per lodge Additional N$20 000 to be paid a year after, should sales of the lodge increase with references from Mara Travel Influencers. For the period ended 31 December 2020, Mara has performed the following 1. Visited 3 of the 5 lodges owned by the group. 2. She has posted all the pictures of the lodges to her social media and posted a video for cach visit to her YouTube channel 3. Mara has given reviews of the lodges visited as stipulated in the contract. The statistics for the lodges visited is given below: Number of pictures pested Number of social media is Number of Youtube views Date of completion Lodge , 20 | 150,000.00 -20 Lada 2 Lodge 15.00 25 25 15,000.00 153,000 250,000.00 500,000.00 15-iun-20 30-04-20 Required: 4 Discuss whether Mara Travel Influencers may recognize her revenue under IFRS 15 for the period ended 31 December 2020. Discuss the performance obligations identified in the agreement. Calculate and allocate the transaction price of the agreement and allocate to the identified performance obligations Prepare journals in the books of Mara Travel Influencers for the period ended 31 December 2020 Part b XYZ Marbles (PTY) Ltd has entered into agreement with Buy and Deliver (Pty) Led to provide the following goods to its customer in South Korea. The terms of the agreement are as below: 1. Buy and Deliver (Pty) Ltd is to arrange for the transport of the marbles from Namibia to the South Korean customer. The cost of transport will be on XYZ Marbles (Pty) Ltd 2. Buy and Deliver (Pty) Ltd is to clear all the export requirements XYZ (Pty) Ltd in Namibia. 3. XYZ Marbles (Pty) holds the risk of the Marbles stock until they reach the customer. 4.XYZ (Pty) Ltd has set the price of the Marbles at NS 1.000.000.00. Buy and Deliver is not allowed to make any changes to the price set. The transaction has been completed as below: 01 January 2020 XYZ Marbles (Pty) Lad completes the extraction of the marbles. 30 January 2020 Buy and Deliver arranges the transport to South Korea of the Marbles Page 14 of 21 28 February 2020 The customer receives the goods and pays over the sale amount of NS 1,000,000 to XYZ Marbles (Pty) Lid 28 February 2020 XYZ (Pty) Ltd pays a commission amount of NS200,000.00 to Buy and Deliver (Pty) Ltd Required: Discuss whether XYZ Marbles (Pty) Ltd is a principle or an agent as per IFRS 15 provisions of principle and agent consideration. Prepare journals to reflect the transactions on the 28 February 2020, in the books of the companies QUESTION 3 35 Marks Mara Travel influencers has entered into a social media influencer partnership with Namibian Amazing views group as an influencer to market the lodges of the travel company situated at all of the 13 regions of Namibia. Both parties have signed an unamendable agreement. On the 1" of January 2020 the terms of the partnership are as follows: -Mara is to visit all of the lodges under the Namibian Amazing views group. -While at the lodge, Mara is to take pictures of the lodge and post on her social media platforms. -Mara is to film a YouTube video of the lodges, touring the lodge and the activities available at the lodge as well as giving an overall review of the lodge, customer service and the experience. Should Mara not visit the lodge, she may request pictures and videos of the lodge from the marketing team to post to her social media platform. Namibian Amazing views is to make the following payments to Mara Travel Influencers upon completion of the tasks required above: -An upfront payment of N$20 000 paid upon signing of the agreement. This payment is to be refunded by Mara, should she fail to visit all the lodges of the group. -Each visit to the lodge NS5000. -Each picture posted on social media N$50. - Additional NS50 per picture with more than 50 000 likes. - Each video of the lodges posted on YouTube N$200 - Additional NS200 for every 100 000 views -Accommodation at an average of NST 000 per lodge Page 13 of 21 - Breakfast, dinner and lunch to the value of N$1000 per lodge -Lodging activities to the value of N51000 per lodge Additional N$20 000 to be paid a year after, should sales of the lodge increase with references from Mara Travel Influencers. For the period ended 31 December 2020, Mara has performed the following 1. Visited 3 of the 5 lodges owned by the group. 2. She has posted all the pictures of the lodges to her social media and posted a video for cach visit to her YouTube channel 3. Mara has given reviews of the lodges visited as stipulated in the contract. The statistics for the lodges visited is given below: Number of pictures pested Number of social media is Number of Youtube views Date of completion Lodge , 20 | 150,000.00 -20 Lada 2 Lodge 15.00 25 25 15,000.00 153,000 250,000.00 500,000.00 15-iun-20 30-04-20 Required: 4 Discuss whether Mara Travel Influencers may recognize her revenue under IFRS 15 for the period ended 31 December 2020. Discuss the performance obligations identified in the agreement. Calculate and allocate the transaction price of the agreement and allocate to the identified performance obligations Prepare journals in the books of Mara Travel Influencers for the period ended 31 December 2020 Part b XYZ Marbles (PTY) Ltd has entered into agreement with Buy and Deliver (Pty) Led to provide the following goods to its customer in South Korea. The terms of the agreement are as below: 1. Buy and Deliver (Pty) Ltd is to arrange for the transport of the marbles from Namibia to the South Korean customer. The cost of transport will be on XYZ Marbles (Pty) Ltd 2. Buy and Deliver (Pty) Ltd is to clear all the export requirements XYZ (Pty) Ltd in Namibia. 3. XYZ Marbles (Pty) holds the risk of the Marbles stock until they reach the customer. 4.XYZ (Pty) Ltd has set the price of the Marbles at NS 1.000.000.00. Buy and Deliver is not allowed to make any changes to the price set. The transaction has been completed as below: 01 January 2020 XYZ Marbles (Pty) Lad completes the extraction of the marbles. 30 January 2020 Buy and Deliver arranges the transport to South Korea of the Marbles Page 14 of 21 28 February 2020 The customer receives the goods and pays over the sale amount of NS 1,000,000 to XYZ Marbles (Pty) Lid 28 February 2020 XYZ (Pty) Ltd pays a commission amount of NS200,000.00 to Buy and Deliver (Pty) Ltd Required: Discuss whether XYZ Marbles (Pty) Ltd is a principle or an agent as per IFRS 15 provisions of principle and agent consideration. Prepare journals to reflect the transactions on the 28 February 2020, in the books of the companies