Question

E4-1 'The following independent situations require professional judgement to determine when to recognize revenue from the transactions: 1. WestJet sells you a non-refundable one-way airline ticket in September for your flight home at Christmas. 2. You pay for a one-year subscription to Maclean's Magazine in March. 3. The Toronto Blue Jays sell season tickets to games in the Rogers Centre. The season begins in April and ends in October. You purchase your tickets in February 4. The RBC Financial Group lends you money in August. The loan and the interest are repayable in full in November. 5. In August, you order a sweater from Sears using its online catalogue. The sweater arrives in September and you charge it to your Sears credit card. You receive and pay the Sears bill in October. Instructions Identify when revenue should be recognized by the company in each situation.

Answer 1

1.	December, when the journey is performed
2.	Every month as and when the magazines are delivered.
3.	Over the period April to October as and when matches happen.
4.	Interest revenue shall be recognised proportionally over the period August to November
5.	September, when the sweaters are delivered.