Accounting · IFRS 15 Revenue Contracts
PlutusTech Co. enters into a contract to provide a customer with a computer and a copy of 'Designer' software. PlutusTech Co. is an authorized reseller of the software from a third-party developer. The total contract price is $3,500. The standalone selling price for the computer is $2,800. The developer provides the software activation directly to the customer, but PlutusTech holds a physical media copy under a valid bill-and-hold arrangement until requested. PlutusTech acts as an agent for the software component, earning a 15% net commission on its transaction share. In accordance with IFRS 15, what is the total revenue PlutusTech Co. should recognize from this contract?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1$2,905✓
- 2$2,800
- 3$3,055
- 4$3,500
Correct answer
$2,905
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