You have just signed a contract with Broadblue Wireless that provides you with a new Galaxy phone and two years of wireless phone and data service. The tom of the contract specify that the price of the phone is price for the wireless service is $55 per month which will be billed to your credit card monthly Ater signing the contract, you pay for and receive your Galaxy phone and provide your credit card details for monthly bil Requirement Using IFRS revenue recognition standards as a guide determine how BroadBlue Wireless would recognize revenue from this transaction under IFRS Step 1. Identify the contract with the customer, specify its torms, and evaluate the probability the customer will pay the transaction price when it becomes de The contract between you and BroadBlue specify the prices for the phone and wireless service, the terms of payment be specified, and the term of wireless service coverage be specified. You pay for the phone immediately and provide your credit card details for the wireless charges, so it is V BroadBlue will collect their monthly bill from you as it comes do Step 2. Identity the separate performance obligations in the contract O A. BroadBlue is not obligated to provide you 24 months of wireless service but is obligated to provide a phone O B. BroadBlue is obligated to provide you 24 months of wireless service but not obligated to provide a phone OC. BroadBlue is obligated to provide you with a Galaxy phone and 24 months of wireless service OD. BroadBlue is not obligated to provide you with a Galaxy phone or 24 months of wireless service Step 3. Determine the transaction price The transaction price is $ IFRS 1. Identify the contract with the customer, specify its terms, and evaluate the probability the customer will pay the transaction price when it becomes due 2. Identify the separate performance obligations in the contract 3. Determine the transaction price. 4. Allocate the transaction price to the separate performance obligations in the contract 5. Recognize revenue when (or as) the business satisfies each performance obligation Stop 4. Alocate the transaction price to the separate performance obligations in the contract O A The price for the service is $2.020 OB. The price for the phone is $700 and for the wireless service is 555 per month of service OC. The wireless service is 555 per month of service OD. The price for the service is $168 per month Stop 5. Recognize revenue when (or as) the business satisfies each performance obligation O A Broadblue will defer the 5700 in revenue for the phone to the end of the two-year term contract however, they will recognize 555 in revenue each month as they provide you with wireless service over the two-year term of the contract OB BroadBlue will immediately recognize $2.020 in revenue for the phone and the two-year term contract OC. BroadBlue will recognize 5168 per month for the phone and the two-year term contract OD BroadBlue will recognize 5700 in revenue for the phone immediately because you have paid for and received the phone. They will recognize 555 in revenue each month as they provide you with wireless service over the two-year term of the contract You have just signed a contract with Broadblue Wireless that provides you with a new Galaxy phone and two years of wireless phone and data service. The tom of the contract specify that the price of the phone is price for the wireless service is $55 per month which will be billed to your credit card monthly Ater signing the contract, you pay for and receive your Galaxy phone and provide your credit card details for monthly bil Requirement Using IFRS revenue recognition standards as a guide determine how BroadBlue Wireless would recognize revenue from this transaction under IFRS Step 1. Identify the contract with the customer, specify its torms, and evaluate the probability the customer will pay the transaction price when it becomes de The contract between you and BroadBlue specify the prices for the phone and wireless service, the terms of payment be specified, and the term of wireless service coverage be specified. You pay for the phone immediately and provide your credit card details for the wireless charges, so it is V BroadBlue will collect their monthly bill from you as it comes do Step 2. Identity the separate performance obligations in the contract O A. BroadBlue is not obligated to provide you 24 months of wireless service but is obligated to provide a phone O B. BroadBlue is obligated to provide you 24 months of wireless service but not obligated to provide a phone OC. BroadBlue is obligated to provide you with a Galaxy phone and 24 months of wireless service OD. BroadBlue is not obligated to provide you with a Galaxy phone or 24 months of wireless service Step 3. Determine the transaction price The transaction price is $ IFRS 1. Identify the contract with the customer, specify its terms, and evaluate the probability the customer will pay the transaction price when it becomes due 2. Identify the separate performance obligations in the contract 3. Determine the transaction price. 4. Allocate the transaction price to the separate performance obligations in the contract 5. Recognize revenue when (or as) the business satisfies each performance obligation Stop 4. Alocate the transaction price to the separate performance obligations in the contract O A The price for the service is $2.020 OB. The price for the phone is $700 and for the wireless service is 555 per month of service OC. The wireless service is 555 per month of service OD. The price for the service is $168 per month Stop 5. Recognize revenue when (or as) the business satisfies each performance obligation O A Broadblue will defer the 5700 in revenue for the phone to the end of the two-year term contract however, they will recognize 555 in revenue each month as they provide you with wireless service over the two-year term of the contract OB BroadBlue will immediately recognize $2.020 in revenue for the phone and the two-year term contract OC. BroadBlue will recognize 5168 per month for the phone and the two-year term contract OD BroadBlue will recognize 5700 in revenue for the phone immediately because you have paid for and received the phone. They will recognize 555 in revenue each month as they provide you with wireless service over the two-year term of the contract
