THE FOLLOWING INFORMATION RELATES TO QUESTIONS 2 & 3 Shift Cycle Ltd sells indoor training cycle packages. The very popular Tour de Cycle package sells for $1000 and contains: a stationary trainer cycle with attached console; 2 Tour games(received with the cycle); and 18 months worth of support services. Included in the support services is the ability to access an expert user forum for specialised training tips. It also includes updates, email and phone technical support. The support service is very popular and is sold separately by Shift Cycle for $10 per month. Shift Cycle Ltd sells the trainer cycle separately for $ 900. The games sell for $60 each. For the year ended 31 December 2019, Shift Cycle has sold 1000 Tour de Cycle packages. Each sale of the Tour de Cycle packages constitutes a contract under AASB 15 Revenue from Contracts with Customers. Question 2 6 pts Recommended time to complete : 12 minutes Required: a) Identify the separate performance obligations in the contract for the sale of the Tour de Cycle package. (1 mark) b) Allocate the transaction price of $1000 to the separate performance obligations. (3 marks) c) Calculate the amount of revenue to be recognised at 31 December 2019 assuming all cycles have been delivered by that date and the online support service commences from 1 January 2020. (2 marks) NOTE: In your answer it is advisable to build a table with headings. Below is a suggested form of presentation. Use the table tool ( Table Tool.png ) to build the table and enter your answer into the table. Additional lines maybe required. Show all workings. Workings a) Performance obligation b) Allocation of transaction price c) Amount of revenue to be recognised at 31 December 2019 Totals HTML Editor THE FOLLOWING INFORMATION RELATES TO QUESTIONS 2 & 3 Shift Cycle Ltd sells indoor training cycle packages. The very popular Tour de Cycle package sells for $1000 and contains: a stationary trainer cycle with attached console; 2 Tour games(received with the cycle); and 18 months worth of support services. Included in the support services is the ability to access an expert user forum for specialised training tips. It also includes updates, email and phone technical support. The support service is very popular and is sold separately by Shift Cycle for $10 per month. Shift Cycle Ltd sells the trainer cycle separately for $ 900. The games sell for $60 each. For the year ended 31 December 2019, Shift Cycle has sold 1000 Tour de Cycle packages. Each sale of the Tour de Cycle packages constitutes a contract under AASB 15 Revenue from Contracts with Customers. Question 2 6 pts Recommended time to complete : 12 minutes Required: a) Identify the separate performance obligations in the contract for the sale of the Tour de Cycle package. (1 mark) b) Allocate the transaction price of $1000 to the separate performance obligations. (3 marks) c) Calculate the amount of revenue to be recognised at 31 December 2019 assuming all cycles have been delivered by that date and the online support service commences from 1 January 2020. (2 marks) NOTE: In your answer it is advisable to build a table with headings. Below is a suggested form of presentation. Use the table tool ( Table Tool.png ) to build the table and enter your answer into the table. Additional lines maybe required. Show all workings. Workings a) Performance obligation b) Allocation of transaction price c) Amount of revenue to be recognised at 31 December 2019 Totals HTML Editor
