How much is the gain on debt restructuring? 2. KIEL Department store grants loyalty awards to its customers wherein for every P 100 purchase made, the customer receives 5 points equivalent to P 5. The points accumulated by the customer may be used as part or full payment for merchandise purchases in the future. During 2018, total sales amounted to P 10,000,000. The fair values of the merchandise sold and reward points are P 9,500,000 and P 500,000, respectively. At the end of 2018, 60% out of 90% have been redeemed by the customers. At the end of 2019, an additional 20% have been redeemed and the revised estimate of total points expected to be redeemed was now at 95%. Per IFRS 15, how much revenue was recognized for the year 2019 related to loyalty awards redeemed by the customers?
How much is the gain on debt restructuring? 2. KIEL Department store grants loyalty awards to its customers wherein for every P 100 purchase made, the customer receives 5 points equivalent to P 5. The points accumulated by the customer may be used as part or full payment for merchandise purchases in the future. During 2018, total sales amounted to P 10,000,000. The fair values of the merchandise sold and reward points are P 9,500,000 and P 500,000, respectively. At the end of 2018, 60% out of 90% have been redeemed by the customers. At the end of 2019, an additional 20% have been redeemed and the revised estimate of total points expected to be redeemed was now at 95%. Per IFRS 15, how much revenue was recognized for the year 2019 related to loyalty awards redeemed by the customers?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. TXT Company is currently under financial difficulty and is unable to meet interest payments and fund requirements to retire its P 10,000,000 bonds payable held by BTS Corporation. Accrued interest on the bonds amounted to 10% of the face value of the bonds. To prevent bankruptcy, TXT Company agreed with BTS Corporation to exchange equity securities for the bonds. TXT Company is issuing 100,000 shares of its P 50 par value ordinary shares. The ordinary share is currently selling at P 80.
How much is the gain on debt restructuring?
2. KIEL Department store grants loyalty awards to its customers wherein for every P 100 purchase made, the customer receives 5 points equivalent to P 5. The points accumulated by the customer may be used as part or full payment for merchandise purchases in the future. During 2018, total sales amounted to P 10,000,000. The fair values of the merchandise sold and reward points are P 9,500,000 and P 500,000, respectively. At the end of 2018, 60% out of 90% have been redeemed by the customers. At the end of 2019, an additional 20% have been redeemed and the revised estimate of total points expected to be redeemed was now at 95%.
Per IFRS 15, how much revenue was recognized for the year 2019 related to loyalty awards redeemed by the customers?
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