Question2 a) On 1 July 2014, Cooper plc entered into a 5 million contract for the supply of computer hardware and five years of after-sales support. The cost of providing after-sales support is estimated at 500,000 per annum and the mark-up on similar after-sales only contracts is 30% on cost (i.e. cost + 30% mark-up). On 1 September 2014, Cooper plc received the 5 million for this contract and recognised the full amount as revenue in its income statement for the year ended 31st December 2014. Explain why the revenue recognition approach adopted by Cooper plc is not appropriate Describe the correct revenue recognition approach and calculate the revenue that should be recognised in each accounting period until the end of the contract. 10 marks