Bellarine Plc Is Publisher of Mode Magazine and Its Customers

question 7

Multiple Choice

Bellarine Plc is publisher of Mode magazine and its customers usually sign a three-year subscription with an advance payment of €500.Mode magazine has 12 issues in a year.What is the appropriate accounting treatment for this sale on the date of signing that is in accordance with IASB (2011) Revenue?

• A)Recognise revenue in full as this is an immaterial amount.
• B)Recognise the sale as a provision.
• C)Recognise the sale as unearned revenue.
• D)Disclose the sale in the notes as a contingent item.

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Definitions:

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Information or facts that are recognized or established.

Oil Shale

A fine-grained sedimentary rock containing organic matter, known as kerogen, that can be converted into oil through heating.

Oil and Gas

Naturally occurring hydrocarbons found in geological formations beneath the Earth's surface, used as fuel and in chemical production.

Coal

A combustible black or brownish-black sedimentary rock formed from plant remains, primarily consisting of carbon and used as a fossil fuel.