- 6 Marks
Question
In line with IFRS 15: Revenue from Contracts with Customers, demonstrate how Somwarbi LTD should account for its revenue in the period from 1 January 2024 to 30 June 2024 and in the period from 1 July 2024 to 31 December 2024.
Answer
Period: 1 January 2024 – 30 June 2024
600 units × GH¢200 = GH¢120,000
Dr Trade Receivables 120,000
Cr Revenue 120,000
Period: 1 July 2024 – 31 December 2024
500 units × GH¢150 = GH¢75,000
Dr Trade Receivables 75,000
Cr Revenue 75,000
200 units × GH¢150 = GH¢30,000
Dr Trade Receivables 30,000
Cr Revenue 30,000
Adjustment for first six months:
600 units × GH¢50 = GH¢12,000
Dr Revenue 12,000
Cr Trade Receivables 12,000
- Tags: Contracts, IFRS 15, Revenue Recognition, Variable Consideration
- Level: Level 2
- Topic: International Financial Reporting Standards (IFRS)
- Series: JULY 2025
- Uploader: Samuel Duah