On 1 October 20X1, the software publisher Formatech collects a non-refundable prepayment of 18,000 for a package of 15 units training days, which the customer company schedules freely over eighteen months. At the 31 December 20X1 year end, 6 days have been delivered. Formatech expects the package to be used in full (case data); each day has the same value (teaching assumption). Calculate the revenue to be recognised in 20X1 and the contract liability balance at year end.
- Prepayment collected
- 18,000
- Training days planned
- 15
- Days delivered in 20X1
- 6