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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic: REVENUE FROM CONTRACTS WITH CUSTOMERS
Requirement: Compute for the transaction price. Assume that the quoted price of the shares remained constant at P20 all throughout the year.

Transcribed Image Text:accordance with PFRS 15. This is because the entity is
providing a series of distinct services that are substantially the
same and have the same pattern of transfer (the services
transfer to the customer over time and use the same method to
measure progress-that is, a time-based measure of progress).
In exchange for the service, the customer promises 100 shares
of its common stock per week of service. The terms in the
contract require that the shares must be paid upon the
successful completion of each week of service. The entity
measures its progress towards complete satisfaction of the
performance obligation as each week of service is complete.
Requirement: Compute for the transaction price. Assume that the
quoted price of the shares remained constant at P20 all throughout
the year.

Transcribed Image Text:8. An entity enters into a contract with a customer to provide a
weekly service for one year. The contract is signed on 1
January 20X1 and work begins immediately. The entity
concludes that the service is a single performance obligation in
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