Thermes d'Argile sells non-refundable prepaid vouchers for treatments in 20X1 for EUR 120,000. Based on its experience with comparable vouchers (case data), the entity expects rights of EUR 12,000 never to be exercised and concludes, after considering the constraint on estimates of variable consideration, that it expects to be entitled to that amount. In 20X1, customers use vouchers for EUR 72,000 of treatments. No amount must be remitted to a third party. Calculate revenue for 20X1 and the contract liability at the end of 20X1.
- Vouchers sold in 20X1
- 120,000
- Expected unexercised rights
- 12,000
- Vouchers used in 20X1
- 72,000