On 1 January 20X1, Montagut transfers control of a press to Riols, which will pay 121,000 in 2 years. Montagut has concluded that there is a significant financing component; the rate of a separate financing transaction with Riols at that date is 10% (case data). Interest is computed each year on the opening balance of the receivable (teaching assumption). Compute the revenue recognised on transfer and the interest income for 20X1.
- Promised consideration payable later
- 121,000
- Payment delay
- 2
- Rate of a separate financing transaction with the customer
- 10 %