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Alpine Ltd sells ski mobiles for $17,000. The ski mobiles are light weight, which allows their easy transportation to other nearby ski fields. Alpine Ltd can also provide custom designed garage facilities for its customers' ski mobiles on the ski slopes at Falls Creek, Victoria for $2,000 per year. Alpine Ltd sells these items either separately or as a package. On 1 April, 2020, Alpine enters into a contract to sell a ski mobile and one year of garaging services to Matt Mogul for $18,700. Cash payment is required at this date, after which legal title to the ski mobile passes to Matt Mogul and the garaging services commence.
REQUIRED:
Question 1: Explain how Alpine Ltd would account for the revenue associated with this transaction in accordance with the requirements of AASB 15 'Revenue'.
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