QUESTION IFRS 15.11 Nqutu Ltd is a South African listed company that manufactures and distributes ethnic jewellery countrywide as well as in the United Kingdom. Nqutu Ltd's head office is situated in KwaZulu-Natal and its jewellery range includes beaded necklaces, bangles and earrings. For the last ten years, Nqutu Ltd has also provided a free service to polish all jewellery in the first two years after purchase to all its account holders. Nqutu Ltd's established and regular customers are required to open an account with Nqutu Ltd with a fixed monthly fee of R100. This is used partly to provide the free polishing service to clients. From past experience, approximately 30% of all jewellery sold is handed in for polishing in the first year after selling date, and approximately 50% of jewellery sold is handed in for polishing in the second year after selling date. The account also serves as a motivation to increase sales to customers, since points are built up for amounts spent on Nqutu Ltd products, thus a hidden component is built into the R100 fixed monthly fee to finance the points system. These points can be redeemed at a certain stage for Nqutu Ltd products. Customers may decide when and how they want to redeem their points. The points structure works as follows: Required Discuss the accounting recognition of the fixed monthly fee by Nqutu Ltd for the year ended 31 December 20.7 in accordance with the requirements of International Financial Reporting Standards (IFRS). (UJ - adapted)