Bellarine Ltd Is Publisher of Mode Magazine and Its Customers

question 27

Multiple Choice

Bellarine Ltd 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 AASB 118 "Revenue"?

• A) Recognise revenue in full as this is an immaterial amount;
• B) Recognise as a provision;
• C) Recognise as unearned revenue;
• D) Disclose in the notes as a contingent item;
• E) E: None of the given answers

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