Cor pora te rep or ti n g

(1 mark) 
 
(IFRS 15 knowledge: 2 marks max) 
The $0.2 million paid to the supermarket reduces the transaction price to $2.8 million 
($3m – $0.2m).
 (1 
mark) 
The variable consideration of $0.3 million cannot be included in the transaction price. 
(1 mark) 
This is because Innovate does not have enough experience of this type of contract for 
it to be highly probable that a significant reversal in revenue will not occur.
(1 mark) 
Control over the computer games is likely to pass to the supermarket upon delivery. 
(1 mark) 
This is because the supermarket will have physical possession and will assume the 
asset’s key risks and rewards. 
(1 mark) 
The revenue that should be recognised by the end of the year is $0.47m ($2.8m × 
50,000/300,000).