VEP Ltd. entered into a contract to provide monthly consulting services to FBL Inc. The contract is for 12 months and commenced on March 1. VEP's year end is October 31. The total value of the contract is $120,000, and the services are to be provided evenly over the duration of the contract. FBL paid the full amount on July 11. Which of the following statements is true with respect to VEP's October 31 financial statements, assuming VEP reports under IFRS?

VEP should record $40,000 as deferred revenue because the contract is not complete.

VEP should record $80,000 as deferred revenue because that is the amount earned.

VEP should record $120,000 as deferred revenue because the contract is not yet complete.

VEP should record $120,000 as revenue because that is the amount of cash received.