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Teal Inc. (Teal) sold and delivered a 3D printer to a large university for total...

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Accounting

Teal Inc. (Teal) sold and delivered a 3D printer to a large university for total consideration of $18,000. As part of the contract, Teal will provide maintenance services on the printer for a three-year period. On a stand-alone basis, Teal sells that model of printer for $14,000, and the fair value of the maintenance services is $2,000 per year. Assuming that Teal reports under IFRS, what amount of revenue will Teal recognize in the second year of the contract?

a) $0

b) $750

c) $1800

d) $2000

Kaylyn, CPA, is preparing the first set of IFRS financial statements for her employer, Tillo Inc. (Tillo).

Which of the following statements regarding Tillos disclosure requirement of revenue on its financial statements is true?

a) Impairment losses on contract assets are disclosed together with other impairment losses

b) the accounting policies for recognition of only the main source of revenue must be disclosed

c) revenue related to contracts with customers will include the opening and closing contract balances

d) the percentage change in revenue from the company's largest customer compared to the prior year must be disclosed

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