OTC automobile company sells car to customer on sale plus 3 year service the price of car OMR 12,000 which includes 1500 for 3 year service. Based on this situation and IFRS 15 identify the correct statement from the following. a- Sale of car performance obligation is recorded in the year of sale and service charges is recognized in the specific year of service b- Both performance obligations i.e., sale of car and service are recognized in the year of sale c- None of them d- Both performance obligations i.e., sale of car and service are recognized after a period of three years.
OTC automobile company sells car to customer on sale plus 3 year service the price of car OMR 12,000 which includes 1500 for 3 year service. Based on this situation and IFRS 15 identify the correct statement from the following. a- Sale of car performance obligation is recorded in the year of sale and service charges is recognized in the specific year of service b- Both performance obligations i.e., sale of car and service are recognized in the year of sale c- None of them d- Both performance obligations i.e., sale of car and service are recognized after a period of three years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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OTC automobile company sells car to customer on sale plus 3 year service the price of car OMR 12,000 which includes 1500 for 3 year service. Based on this situation and IFRS 15 identify the correct statement from the following.
a- Sale of car performance obligation is recorded in the year of sale and service charges is recognized in the specific year of service
b- Both performance obligations i.e., sale of car and service are recognized in the year of sale
c- None of them
d- Both performance obligations i.e., sale of car and service are recognized after a period of three years.
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