IFRS 15 CASE STUDY QUESTIONS

The following Transaction took place at Ogun ltd:

1. On 5 March 2017, Ogun ltd sold goods to Ibadan ltd
for N18m cash and agreed to repurchase the goods
for N19m cash on 5th July 2017. The goods will be
shifted to a storage facility under Ibadan control and
security
2. On 31st March Ogun Ltd car manufacturing division
consigned several vehicles to independent dealer for
sale to third parties. The sales price to the dealer is
Ogun list price at the date of sales to third parties. If
a vehicle is unsold after six months the dealer has
the right to return the vehicle to Ogun Ltd within
next 15 days.

Required:
Discuss how the above transactions should be
accounted for in the books of Account of Ogun Ltd

2 Gladstone ltd a company commenced a four-year

contract early in 2013. the price was initially agreed
at N12,000,000.
Profit, which was reasonably foreseeable from the
year ended 31 Dec. 2013 is to be taken on a costs
basis and revenue is to be taken on a consistent
basis.
Relevant figures are as follows:

2013 2014 2015 2016

N,000 N,000 N,000 N,000
Cost incurred in year 2,750 3,000 4,200 1,150
Anticipated future cost 7,750 7,750 1,550 -
Work certified and invoice to date 3,000 5,000 11,000 12,500

Required:
show how the above would be disclosed in the
statement of Profit or Loss and Statement of
Financial Position for each of the four years ended
31 dec. 2016.