Currently the hotels account for service charges on the bills in a pass through manner.For example, a bill that has the sale value of 100 and a 10 service charge is recorded as 100 revenue, and service charge payable 10, the total is received in cash. The service charge goes off the books when distributed to the employees.
Can this method of accounting be continued under IFRS 15? Should the revenue be 110 under IFRS 15 and then the accrual for service charge to be made via income statement as an expense.?
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