Answer:
Groupo
Transaction Price When Revenue should be recognized
a. $901,000 the delivery date
b. $879,000 the sales date
c. $443,000 the sales date
c. $37,000 in the period interest is earned.
Explanation:
1) Data and Analysis:
a. Delivery date: Cash $901,000 Sales Revenue (MTN) $901,000
b. Sales date: Accounts receivable (Grifols) $879,000 Sales Revenue $879,000
c. Sales date: Accounts receivable (Magnus) $480,000 Sales Revenue $443,000 Deferred Interest Revenue $37,000
2) According to the IFRS 15 and ASC 606, Revenue from Contracts with Customers, revenue should be recognized when performance obligations have been met.
