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PART I (a) Discuss in detail, with reference to the principles of IFRS 15 Revenue from Contracts with Customers, whether Lockdown Health Ltd should recognise the following elements of the revenue contract with Sanitize Ltd as separate performance obligations: the testing equipment; the installation of testing equipment; and the 12-month warranty. (b) Assume for this section of the question that there are three separate performance obligations, namely the testing software, testing equipment and training services in the revenue contract with Sanitize Ltd. Criticise the journal entry that was processed with regards to the allocation of the transaction price for revenue recognition to the separate performance obligations listed above, for the year ended 31 August 2020. Support your answer with calculations and amounts. Communication skills: logical flow and conclusion (c) Prepare the journal entries to be processed by Lockdown Health Ltd to account for the transaction with StayHome Ltd for the year ended 31 August 2020. PART II Prepare the journal entries in the financial statements of Telecon Ltd to account for all the journal entries arising from the contract with the South African National Defence Force for the year ended 31 August 2020. Please note: Round off all amounts to the nearest Rand. Journal narrations are not required. Deferred tax journal entries are not required. Ignore any Value Added Tax (VAT) implications. Your answer must comply with International Financial Reporting Standards (IFRS).

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