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Problem 1. On 1. On July 1, 2013, Torela Company, a construction company, entered into a contract to construct a commercial building for a customer-owned land for promised consideration of P1,000,000 and a bonus of P200,000 if te building is comp comple lete ted d wit witin in 2! mont monts s"" #n ince incept ptio ion n date date,, te te enti entity ty e$pe e$pect cts s tota totall construction costs of P%00,000 to complete te building" Te entity accounts for te promised bundle of goods and ser&ices as a single performance obligation satis'ed o&er time in accordance wit paragrap ()*+ 1 because te customer controls te building during construction" #t contract inception, te entity cannot conclu conclude de tat tat it is igly igly proba probable ble tat tat a sig signi' ni'can cantt re&er re&ersal sal in te amount amount cumulati&e re&enue recognied will not occur wit respect to i nclusion of bonus to contract price" Completion of te building is igly susceptible to factors outside te entities in.uence, including weater and regulatory appro&als" (n addition, te enti entity ty as as limi limite ted d e$pe e$peri rien ence ce wit wit simi simila larr type types s of cont contra ract cts" s" Te Te enti entity ty determines tat te input measure, on te basis of cost incurred, pro&ides an appr approp opri riat ate e meas measur ure e of prog progrress ess towa toward rds s comp comple lete te sati satisf sfac acti tion on of te te performance obligation" #s of /ecember 31, 2031, te construction costs incurred to date by Tolera Company is P!20,000" (n te 'rst uarter of 2032, te parties to te contract agree to modify te cont contra ract ct by can cangi ging ng te te .oor .oor plan plan of te te build building ing"" #s a resul esult, t, te te '$ed '$ed cons consid ider erat atio ion n and and e$pec $pecte ted d cost costs s incr increa ease sed d by P1 P10 0,0 ,00 0 and and P1 P120 20,0 ,000 00 respecti&ely" (n addition, te allowable time in acie&ing te P200,000 bonus is e$tended by  monts to 30 monts from te original contract inception date" #t te date of modi'cation, on te basis of its e$perience and te remaining wor to be performed, wic is primarily inside te building and not subect to weater conditions, te entity conclude tat it is igly probable tat including te bonus in te transaction price will not result in a signi'cant re&ersal in te amount of  cumulati&e re&enue recognied" /espite te canges, te contractor e&aluates tat te remaining goods and ser&ices to be pro&ided using te modi'ed contract are not distinct from te te goods and ser&ices transferred transferred on or before te date of  of  cont contra ract ct modi modi'c 'cat atio ion4 n4 tat tat is, is, te te cont contra ract ct rema remains ins a sing single le perf perfor orma manc nce e obligation" obligation" )or te year ended /ecember 31, 2032, 2032, Torela orela Company Company incurred incurred construction costs of P15,000" Under IFRS 15, what is the balance of (1) Construction in Proress as of  !ecember "1, #$"# and (#) reali%ed ross &ro't to be reconi%ed b orela Com&an for the ear ended e nded !ecember "1, #$"#, res&e cti*el+ a" P1 P1,0 ,012 12, ,00 00 and and P5% P5%, ,00 00 b" P6 P62 2, ,00 00 and and % %, ,00 00 c" P1 P1,0 ,012 12, ,00 00 and and P21 P21%, %,0 00 0 d" P1,0 P1,060 60,0 ,000 00 and and P12% P12%, ,00 00

Problem #.  #.  7cobee operates and francise restaurants around te world" On  January 1, 201, 7acobee entered into a francise agreement wit a francisee" #s part of its francise agreement, 7cobee reuires te francisee to pay a nonrefund refundabl able e upfro upfront nt franc francise ise fee fee of P5,0 P5,000 00 upon upon openin opening g a resta restaura urant nt and ongoing payment of royalties, based on 108 of francisee9s sales" #s part of te francise francise agreement agreement,, 7cobee 7cobee pro&ides pro&ides pre-opening pre-opening ser&ices, including including supply supply and installati installation on of cooing euipment and cas registers, registers, &alued at P30,000, P30,000, wic is te stand-alone selling price of te pre-opening ser&ices" (n addition, te francise agreement includes a license of (ntellectual Property suc as 7cobee9s trademar and trade name to te francisee"7cobee as determined tat te license pro&ides a rigt access to (ntellectual Property o&er time" 7cobee as determined te stand-alone selling price of te license is P%0,000" Te francise agreement as term of 10 years" On January 1, 201, te francisee paid te nonrefundable upfront francise fee of P5,000 to 7cobee"

7cobee e&aluates te arrangements and determines it meets te criteria to be accounted for a contract wit a customer under ()*+ 1" 7cobee determines its pre-opening ser&ices and license of (ntellectual Property are eac distinct and, terefore, need to be accounted for as separate performance obligations" #s of  /ecember 31, 201, 7cobee already satis'ed its performance obligation to supply and install cooing euipment and cas registers to te francisee" )or te year ended /ecember 31, 201, te francisee reported sales re&enue of  P100,000" Under IFRS 15, how much total re*enue shall be reconi%ed b c-obee for the ear ended !ecember "1, #$1+ a" P5,000 b" P26,00 c" P,0 d" P!,10

Problem ". On January 1, 201%, 7atibay /e&elopment Corporation :7/C; entered into a contract wit Company < to construct a new corporate eaduarters on land owned by Company <" Contractor 7/C determines tat control of te building is passed to Company < as it is constructed" Terefore, te performance obligation is satis'ed o&er time" Te contract price is P,000,000, but tat amount will be reduced or increased depending on wen construction of  te building is completed" )or eac day before /ecember 31, 2015, tat te building is completed, te promised consideration will increase by P2,000" )or eac day after /ecember 31,2015 tat te building is incomplete, te promised consideration will be reduced by P2,000" Te parties a&e also agreed tat wen te building is complete, it will be inspected and assigned a green building certi'cation le&el" (f te building acie&es te certi'cation le&el speci'ed in te contract, Contractor 7/C will be entitled to an incenti&e bonus of P200,000" On /ecember 31, 201%, 7/C determined tat =e$pected &alue> better predicts te &ariable consideration it will recei&e regarding te early completion or delay of  te construction because of te di?erent outcomes possible based on 7/C9s current construction scedule and its e$perience in past proects" 7/C estimate tat it is 08 liely to complete te proect 10 days aead of scedule and recei&e an incenti&e of P20,000, 28 liely to complete te proect on time and recei&e no incenti&e and 28 liely to complete te proect '&e days past scedule and incur a P12,000 penalty" #s of te same date, on te oter and, 7/C determined tat te =most liely amount> is te better predictor to estimate te &ariable consideration associated wit te green building certi'cation bonus because tere are only two possible outcomes :P200,000 or P0;"
Costs incurred during te P2,!00,000 year Astimated costs to P1,00,000 complete at te end of  te year

P%0,000 P1,30,000

Under IFRS 15, /ssumin the outcome of construction can be estimated reliabl, what is the reali%ed ross &ro't0(ross loss) to be reconi%ed b !C for the ear ended !ecember "1, #$1+ a" :P230,000; b" :P220,2; c" :P20,000; d" :P1,000;