Soulfood Limited, a company that provides alternative health solutions, operates in each of the provinces of the country. There are 9 practices in total and the company has been in operation since 2018. The company offers mind gym, body talk, detox sessions etc and focuses purely on the mental aspect of being healthy. Patrons were charged R100 for session which typically lasted between 45 minutes to an hour. Due to growing demand for mental wellness over the recent years, the company introduced a membership scheme. Details of the scheme are as follows: New members are charged a non-refundable once-off joining fee of R500 and an annual membership fee of R7 500 per member. - Both the joining fee and the annual membership fee are paid upfront by the members. - The membership period is from 1 January to 31 December each year. - The membership fee remains the same regardless of what time of the year the member joins. - In exchange, members get unlimited use of the facilities/ activities/ sessions during the period ending 31 December. The cost of providing access to a member is estimated at R4 250 per annum. - Members are given the option to renew their contracts for another year. The last day for paying for renewal of memberships is 31 January. Members who renew by the due date are able to pay 80% of the membership fees for the year. Soulfood Limited sold 250 memberships countrywide during the 2020 year spread across the provinces. It is anticipated that 55% of the members will renew their membership before 31 January 2021 and qualify for the reduced membership fees. The following amounts were received for the year ended 31 December 2020 : Soulfood Limited recently appointed a new accountant as their previous accountant of many years had sadly passed on. The new accountant is somewhat inexperienced yet overconfident and not one to request advice. He is busy preparing the financials for the year ended 31 December 2020 and has recognised all joining and membership fees as revenue upon receipt. REQUIRED Discuss with reasons, the appropriateness of the recognition and measurement of joining fees and membership fees adopted by Soulfood Limited, in terms of IFRS15. Your answer should address each of the following: a) Briefly explain whether the recognition of the receipt of the joining fees and membership fees as revenue on the date of receipt was correct. (5) b) Determine the transaction price and provide reasons for your answer (5) c) Identify the performance obligation/s in the contract with a brief explanation (5) d) Calculate the allocation of the transaction price to the performance obligation/s with a brief explanation e) Show the correcting journals that will be required to be processed for the years ended 31 December 2020 and 31 December 2021