Question

Bridgeport Ltd. offers on-demand streaming of live soccer matches from around the world to subscribers. The company, which uses IFRS, offers 10-month subscriptions, which correspond to the schedules of most of the world's major soccer leagues. When a subscriber signs up with Bridgeport, a fee of $760 is charged to their credit card. Subscribers are provided with a unique password that enables them to watch as many games as they wish on a single streaming device of their choice. The subscription contractsare non-cancellable. During August 2021, Bridgeport sold 6,400 subscriptions for the period August 1, 2021, to May 31, 2022. Using the five-step model for revenue recognition, how much revenue Bridgeport would be able to rcoganize for the month of August 2021? Amount of revenue ta $

Answer 1

As performance obligation is satisfied over time the revenue they can recogonise is over the months

so for the month august they can recogonise

revenue recognise in august =(760x6400)/10=$486400