Mini-mock 1 walkthrough - Part 2
Taught by Louise Setton · AI tutor support included
Learn how to account for a proposed customer loyalty scheme under IFRS 15, including how loyalty credits create a separate performance obligation and affect revenue recognition.
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In this lesson
- 0:00 Loyalty Credits Mini Mock Introduction
- 0:48 How to Approach Accounting Treatment
- 3:38 Identifying IFRS 15 Revenue Rules
- 5:05 Separate Performance Obligation Explained
- 7:37 Breakage and Revenue Recognition Options
- 11:39 Accounting and Commercial Consequences
About this lesson
You’ll work through the treatment of contract liabilities, deferred income and breakage, using expected redemption rates to assess when revenue should be recognised. This CIMA case study lesson also shows you how to structure an accounting treatment answer in the exam: state the relevant rules and definitions, apply them to the scenario, and explain the effect on reported results. You’ll consider both the accounting and commercial consequences, including repeat bookings, revenue cannibalisation and monitoring redemption rates.
Duration: 14m
Transcript
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