TheInternationalFinancialReportingStandards(IFRS)mustbeused.

You were recently hired by, a software company.

According to the CFO, a previous investment advisor left one of the transactions we performed with TD bank and did not recognize it. I require a complete report on the transaction.

TD- Bank hired US a Customized Software to develop a customized mortgage loan application platform for the Bank. superbike Software is a software developer which is contracted by the Bank to provide a customized Loan Platform for the Bank's mortgage loan applications.

TodeveloptheLoanPlatform,theCompanyengagesinSoftwareServicesthatsignificantlymodifyitsproprietaryloanapplicationsoftwareinorderforittointegratewiththeBank'sexistingsystems.

Conductinginterviews,testingthesoftware,addingandmodifyingAPIinterfaces,addingcustomfunctionalities,andcustomisingtheLoanPlatform'sdesignareallexamplesofsoftwareservices.

DuringtheSoftwareServicesperiod,theBankhasnocontroloverhowtheLoanPlatformisused.

FollowingcompletionoftheSoftwareServices,theCompanywillprovideProcessingServices,whichwillincludehostingtheLoanPlatformonitsserversinordertoenabletheBankandloanapplicantstoaccessthesoftwareviatheinternet.

AtnotimeistheBankpermittedtoruntheLoanPlatformonitsownorthird-partyhardware.

TheSoftwareServiceswillbeginonJuly1,2021,andwilllastuntilDecember31,2021.

TheProcessingServiceswillbeginonJanuary1,2022,andwilllastforafive-yearperiod.

ThecontractrequirestheBanktopaytheCompany$3millioninnonrefundablefeesatthestartofSoftwareServicesand$3millionoverthecourseoftheCompany'sprovisionofProcessingServices.

OtherthantheSoftwareServicesandProcessingServices,anyexplicitorimplicitpromisesareirrelevantinthecontextofthecontractandneednotbeconsidered.

The total transaction price is $6 million.

TheSoftwareServicesarerequiredtobuildthecustomisedLoanPlatformonwhichtheCompanywillprovidetheBankwithProcessingServices.

Inotherwords,theSoftwareServicesarecriticaltotheBank'sabilitytobenefitfromtheProcessingServicesinthemannerintended.

The Bank does not derive value from the Software Services but rather derives value from the Processing Services. The Processing Services cannot begin until the Software Services are complete (i.e., until a Loan Platform that meets the Bank's specifications has been developed).

Please using the CPA handbook to analyze how to recognize the transactions and describe how this will be handled