• You can revisit questions and change your answers at any time during the exam.
• The only permitted characters for numerical answers are:
• Numbers
• One full stop as a decimal point if required
• One minus symbol at the front of the figure if the answer is negative.

For example: -10234.35

No other characters, including commas, are accepted.

## Navigating between questions

• Click Next Button to move to the next question.
• Click Previous Button to move back to the previous question.
• Click on a question number from the Exam Progress Details panel (see next page) to move directly to that question.
• A message will be displayed when you click to move away from a question which has been partially attempted. You can choose to stay on the question and review your answer(s) or continue.
• When reviewing your answer(s) for partially attempted questions ensure you read any message displayed in red text below the question in Section A or below the question
part(s) in Section B
.

## Havelbean Co OTQ case

Information relevant to questions 116-120

Havelbean Co is a broadband provider which receives government aid to provide broadband to remote areas. Havelbean Co invested in a new server at a cost of $2,400,000 on 1 October 2019. The server has an estimated useful life of ten years with a residual value of$360,000. Havelbean Co uses straight-line depreciation on a time apportioned basis.

The company received a government grant of 30% of its cost price of the server at the time of purchase. The terms of the grant are that if the company retains the asset for four years or more, then no repayment liability will be incurred. Havelbean Co has no intention of disposing of the server within the first four years. Havelbean Co's accounting policy for capital-based government grants is to treat them as deferred income and release them to income over the life of the asset to which they relate.

1. What is the net amount that will be charged to operating expenses in respect of the server for the year ended 31 March 2020?
2. What amount will be presented under non-current liabilities at 31 March 2020 in respect of the grant?
3. Havelbean Co also sells a package which gives customers a free computer when they sign a two-year contract for provision of broadband services. The computer has a stand-alone price of $200 and the broadband contract is for$30 per month.

In accordance with IFRS 15 Revenue from Contracts with Customers, what amount will be recognised as revenue on each package in the first year?

Select the correct answer from the options below

4. Determining the amount to be recognised in the first year is an example of which stage in the process of applying IFRS 15?
5. Havelbean Co is carrying out a transaction on behalf of another entity and the finance director is unsure whether Havelbean Co should be regarded as an agent or a principal in respect of this transaction.
Which of the following would indicate that Havelbean Co is acting as an agent?