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Revenue Recognition

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A.What is the specific key accounting question(s) being asked?
Treat the activation card and prepaid voucher as one deliverable item or as two separate items for accounting purposes.
B.What are the appropriate FASB Codification reference(s) that you used to support your proposed accounting treatment?
ASC 605-25-55-8 thru 55-12
ASC 605-10-S99-1 ASC 605-25-25-4 to 25-6 ASC 605-25-30-2 ASC 605-25-30-4 thru 30-5 ASC 605-25-30-6A ASC 605-10-25-1
C.What is your conclusion as to the appropriate accounting conclusion, be specific as to the timing of the accounting recognition.
Both the activation card and prepaid voucher have standalone value and can be recognized as separate units of accounting.
The $150 revenue earned should be allocated to the sale of the new activation card and prepaid voucher on the basis of their relative selling price.
Selling price determinations:
ASC 605-25-30-6A(b) For a deliverable not yet being sold separately, the price established by management having the relevant authority (it must be probable that the price, once established, will not change before the separate introduction of the deliverable into the marketplace).
ASC 605-25-30-6B third-party evidence of selling price is the price of the vendor’s or any competitor's largely interchangeable products or services in standalone sales to similarly situated customers.
The $50 revenue earned should be allocated to the sale of the prepaid voucher that provides for airtime minutes which be recognized at their point of use.
D.What was the other possible solution(s), and why did you not select that as the answer? What other FASB Codification reference(s) did you consider, but ultimately decide were not appropriate for this fact situation. The other possible solution was to consider the activation card and the voucher as one deliverable. However, that was not applicable to

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