BUS 320 Lecture 4: #1

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Dennis Chung

Document Summary

Sapphire industrial limited (sil) regularly sells three products individually at the stand-alone prices of , and for products a, b and c respectively. Sil enters into a contract with a customer to sell products a, b and c at a bundle price of ,300. The performance obligations for each of the products will be satisfied by sil at different points in time. Sil regularly also sells products a and c together to other customers at a bundle price of . Management of sil has decided to opt for early adoption of ifrs 15: revenue from contracts with customer beginning with the current fiscal year. Determine the transaction price that sil should use to recognize revenue for each of the products a, B and c in its bundle sales to the customer. Round all dollar amounts to the nearest dollar.