Tilly LTD sells a machine and one year's free techenical support for €200,000 on 1st November 2020. The Customer Paid in Full on this date and the machine was delivered. It is usually sells the machine for €190,000 but does not sell techenical support for this machine as a standalone product. Other support services offered by tilly attract a mark up of 50%. It is expected that the techenical support will cost tilly €40,000.

Required.

With referance to IFRS 15 Evaluate How the Contract.will be accounted for the financial statement of yilly LTD for year end 30 april 2021

Please with workings

Subject Financial Reporting

pur-new-sol

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