v4, 2000) Bt att ica that Ie cu Tale Fan matwity wt PL ar tse at the Mrnctisce mast jy FAURE U the tranche oval Incurred indirect eu Wek NSinber 30, 2020. The gross salen ported to 1 2020. The tr install payment was nde ae much is the net '. Assume the coltectibility of the note is ot tay Marureds ow much 6 the net ‘come for the year ended, December 31, 20207 Pv 6aasisey FQ & 326268 ld £44,%6q (liBAGD— 106; 04) eo jitlast Aki, Sat TO” 4,344,460 © 2817268 4. 3,072'268 “ager el GF MAC, op0 ¢ note is regsonably‘certain, how much is the net in Xd Asn the collectibility of th ha your endea: Decca oe aeser | 2 13%G, 269 ——— & 9,438,880 b ee. The following expenses were incurred: Litial services: Direct cost 235,000" Fy, Indirect cost agog {27 €e Continuing Services: Direet cost 23,9007 geqe0 Indirect cost 9,000 Sse The management of AB has estimated that they can borrow loan at equal to_2¥6 ofits monthly gross sales was also Specified in the contract, AB reported gross the rate of 12% (PV ta 3.04), The franchisee commenced its operations on July 31, 2020, 4 continuing franchise te: 950,000 for the month, — Ate How much isthe net income to be reported on August 31, 20209 & 59,550 1Sb.a00 Iejcon = b 83,450 SSa0m PY Nico Orman &. 48,910 32,000 CCD 26 Gs AGO d. 72,810 Gm (2sha0) x om Ree Pex) pee, 01% Tall “3B,3g0 35,100 Suse — ae 243,64 6820 85083. MIRE reatmieant sold a patio Jarwuary 2020 called for n P1000 hae Ned for a P100, ihe value of inital required the Ganchisce te pe carly in 2020 and its sulea for the vere was 12% (PV factor was 1.6901). BULL ENR: joy” © il revenue for 20207 ONE eo, coo ‘Sar ‘ : ME KPO Jo, Wo.) 28/8F9.40 Rat 1. On April 1, 2020, GOOD Inc. entered into a franchise agreement with franchise fees agreed upon is P246,900, of which P46 900 ip payable unce sigan to be covered, terest bearing note payable in fotir equal annual instal! payment is, in 100 days, BEST Inc. has a high credit rating. the note is ly assured. GOOD Inc. substantially performed all necessary re incurred out-of-pocket costs of P125,331 and P1Z,345 for direct expenses and respectively. Prevailing market rate is 9%. PV factor is 3.2397 For the fiscal year ended June 30, 2020, how much revenue from franchise fee ~ill the franchisor recognize? / 0 b. 208,885 ©. 246,900 6. 83,554 _S© Mejobee operates and franchises restaurants around the world. On January 1. 2 entered into a franchise agreement with a franchisee. As part of its franchise agree: requires the franchisee to pay a non-refundable upfront franchise fee of P9S,000 restaurant and ongoing payment of royalties, based on 10% of Sanchisee’s sal franchise agreement, Mejobee provides pre-opening services, including supply cooking equipment and cash registers, valued 330.0081 waich is the the of the pre-opening services. In addition, the franchise agreement includes a licer Property such as Mejobee's trademerk and trad Sauchisce. Me! that the licence provides a right t Intell P determined the stand-alone sélling price of the licence is]? 70,000, The fanciuise term of 10 years. On January 1, 2020, the franchisee paid the non-refundable up of R95,000 to Mejobee. Poyaities on Mejobee evaluates the arrangement and determines it meets the criteria to be contract with a customer under IFRS 15. Mejobee determines its pre-opering ‘of intellectual Property are tach distinc!) and, therefore, need to be performance obligations. AS"of December 31, 2020, M: obligation to supply and install cooking equipment and’ cash registers t ended December 31, 2020, the franchisee reported sales revenue of P100,000. ¥ ic = T= ‘Under IFRS 15, how much total revenue December 31, 2020? a 95,0007 en, @ > 28,500 DFFe as,c05 Il be recognized by Mejobee for the year ended 60.09 “Ye x UWem = 28D oa c > 66,021 Wemé AQP Yo «Alar Ge.0> 2 yar toa GS pranyicr = {222 - — agog 4059 atPage 4 6 Be REND! 2020, an enity grated achive a anetae lnc ngreeroent oF royalties equa en © Rontefindable upfront fee in the amount of CaNH000 aed Seen fa Ont fee go aivalent {0 5% of the sales of the franchisee. The Tuinchisee puld theta fee on January 1, 3020, In relation to the nonref 7 si th . 7 fundable upfront fee, the franchise agreement required the entity w rende the following performance obligations: stand-alone selling price of P200,000. * To .construct the franchisee's stall and © To deliver 10,000 units of raw materials to the franchisce yd-alone selling price of 250,000, * To allow the franchisee to use the entity tradename for a period of 10 yeurs starting January | 2020 with stand-alone selling price of P50,000, isce's stall. On December 3}, On June 30, 2020, the entit leted the construction of the franchi On Docember 3), 2020, the entity was ble to deliver 3,000. units of raw materials to the frames, For the yt ended December 31, 2020, the franchisee reported sales revenue amounting to P100,000. The entity had determined that the performance obligations arc separate and distinct from one anc bh jocated to the construct A. What is the amount of nonrefundable upigyat fee to be allocat Pind alee de ranchisee’s stall? . Beec Goven) ~ 16208 y maa aes —= 160, "eee mee 4. 120,000 mos it f delivery of raw 2. What is the amount of revenue to be recognized in relation to the use of : ‘materials forthe year ended December 31, 2020? oe OD OE es a a. 100,000 od 48 rae 2, & 200000 Loo ~BerGa@7 28 “a 7 gonus 120! “ ZF « 600%" b= GOO aco 4. 75,0007 3. What is the amount of revenue to be recognized in relation to the use of entity's tradename for the year ended December 31, 2020? > See be Lyoo2 > 000% A/D ocGe yoo * oupnes > BS e. 50,000 oo 4. 10,000 sation foo . — Sal RW wr, ye doaa+ (Cae Ru AMM 24, Tata o> hd » Faav + 20700 + 1e~20 y 200 Cee) oe . 7 Wass FAD » toys Giccn > aa A SE les i hd woo A en Ie ete wi rece y ‘tat Aesement, Starbeans requires tranchisce “iat acta rancher the stitch Sea nt : yable inual instalments every December franchises issued a hon rn Sane ic OF 10% for the Balance of the inact franchise fee 1 Soin nw wide - proven aie of the notes Sg ren ini ten Sears prvi papa ncluhng supply and nea cas pac el eek aE ag DY in "rformance obligation that need nat be. Mbeya pcre gai serpy an il cote eu crite etree arn nn eS a Whe fanc ‘les teen ne snout oF 00000 ce \ Sear of the note receivable is Feasonably assured? Accyuod a eee wre ice fee eee tee i ore ans Sty, 203 WR AR ~ 454, 994 G21. 26E SS ==" ecw: 220.20 ~ (385, Starbeans for the year ended December 31, “vale “12420 + ion ofthe note receivabte is ROL reasonably assured? nclalinert SO, Ooch, a> G24 (e¢a5 4g) m den 2 ps Chie9 20 = 96 13) B44, 39a or 24 oe Perc FC 6888 ASF) i , 2018 and reported sales ar ended December 31 2018. The franchi sevenue amounting to P50,000 isee paid the first de installment on its sured what isthe Yros: profi iv he er BH, 208. in relation to tin twitiut 66,028 Rea ¥240, (AT ~ 44Q,103 882,146 Se, DID) 44,014, ae 22,009 88037 2. If the collection coud Of the note receivable fs reasonab Gosu what i the et income tobe "eorted by the entity for the year endda Decemes Seana LE 98,850 $, 037 . 94,50 & 10.028 ae) 4. 92,037 © cep 28-8886 ENDY tons Puen, 8508 96 BO Lesucae ee 6 Peuner) ) = Scanned by Cams 18) 80 Pittman Cait