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Add Redemption Agreement Template initial

i just tried to copy paste so whenever i copy paste to the remaining remaining yes and the figures increase by one i think one of your one of you basically have identified that it should be the same for all the year which is three four six five okay so when i i want to be fast i forgot i just copy and drag it then it become three four six six three four six seven three four six eight it's actually to be the uh the the the same amount which is three four six five uh i think that is i have been spotted by one of your colleagues so uh that is a small correction but i think uh the examples or exercises which we have done with regards to post employment benefit i think that should be enough so for today i just would like to focus on contract modification okay contract modification and how would you account for a contract modification because i think i myself initially also have some confusion but when i i read more and more i think i would like to basically address again this issue on contract modifications are you can you all hear me yes yes sir okay so for contract modification as i go through further and further i think i think uh this uh so let me share you uh the illustrative example from i think if you want this illustrative example actually you can also download from uh from the internet okay but if you want me to upload also i can basically upload it since i have downloaded it so we should cut to um contract modification let me just show you the document okay okay foreign [Music] uh um [Music] [Music] okay can you can you see this document of course it is long but it's have a lot of illustrative examples but we will focus on what we have done in in classes okay so i think this graph is a good explanation like with regard to contract modification okay with regards to contract modification so when you look into a contract modification uh you are basically looking whether there are additional goods or services okay whether there are additional goods or services which need to be added to the original contracts okay so of course if there are additional goods or services which need to be added okay which need to be added to the contracts okay uh then only you evaluate whether this uh additional good or contra this additional requirement of goods or services will lead toward a separate contract or not okay so the the key issue here is whether there is any additional good or services which need to be added into the original contract okay so if there is no additional good or services of course um of course the treatment is uh the one which is below okay so you only you will only create a separate contracts okay if you have an additional goods and that additional goods or services is distinct so later i will show you because in mfrs 15 okay there is also a definition what distinct mean okay what this thing mean okay so first you need to see whether you have additional requirement to provide additional goods or services if yes then you need to look whether that additional good or services is distinct okay and whether the price of these additional goods or services is basically reflecting its stand alone selling price it is not influence okay by the other prices in the contract it is its own price okay it isn't its own price so what this thing mean so uh let me show you this this come from paragraph 27 okay this comes from paragraph 27 from mfrs15 okay a good is distinct if you need to meet two criteria okay you need to uh to meet two criteria first if the good okay can be used on its own okay can be used on its own it doesn't require okay it doesn't require um other okay other good or services to be provided when it is delivered it can be used on its own okay based on its own or okay might be the the customer who have ordered that good it can use it with the other available resources in the company okay it does not require uh to be used together with some other product which might not have been delivered okay because sometimes when you have a customer order you might have for example uh for example two different delivery or two sets of delivery of promises to deliver the product so a product is distinct distinct mean if the product has been delivered it can be used on its own okay without having to wait okay for the second batches for example of the product to be to be sent or even if the company can use it with other available resources that is already there in the customer premises or facility uh that show that the product is distinct okay so that is one okay and the product is distinct if okay the the promise to deliver the product can be separately identifiable from the other from the other promises in the contracts so if in the contract you only have okay you only have um one promise most probably that all the product there is basically not distinct because you need to basically uh because you cannot separately identify uh different batches because it's only have one okay one batch of delivery okay so um if you can separately identify from other promises and that will also approve uh might lead toward a distinct characteristic but okay but of course in there is a further discussion in the standard okay even if you have separately identifiable but if the first batch and the second batch is basically connected for example the first batch of the product is basically for the purpose to prepare for the second batch of the product to be to be to be sent or to be delivered and then that again might not lead toward a distinct criteria okay so these two must be able to must be able to be used on its own and the promise okay okay is separately identifiable from the other promises in the contracts okay so that is the two criteria which need to be uh to be met okay in order to meet the criteria of this thing if not then you can just consider that the good are not distinct so that is basically the distinct criteria so when you look into an additional uh goods or services which might be required that might modify the original contracts if there are if the additional good on services is distinct okay and the price of that additional goods is basically reflected its own price then just create a new contract okay then just create a new contract so doing uh don't modify okay the original contract because the additional goods or services are basically distinct and its price is also it's not affected okay by the by the other prices okay in the contract it is its own price so just create a new contracts is that okay with you so anyway yep i will go back to whatever example which i have given you before together with the additional question which i give you as an example later okay uh yeah the promise part right can you explain again sorry because for example for example if you already agreed on initial contract that it should be delivered in two phases okay so uh so that's why when you look into the discussion by the standard it says that two or more promises okay so that's mean for example the customer order okay the customer order 100 you need the first 50 you need will be sent on certain date let's say on 31st of january the second okay the second 50 you need will be sent on 31st or delivered on 31st of march that is some criteria okay of identifiable okay promises okay but two separately ident two separate promises is not necessarily distinct and that is what has been discussed in the standard uh so that is one criteria for you to identify this thing okay so if you uh basically already promised that the delivery will be in two batches the first batch on certain date and the second batch on the second certain other date but not necessarily but that is already an initial condition because you have two uh different promises which can be separately been identifiable but if still related for example the first 50 pages is if it is still related for example the first 50 pages will be used as an input for the delivery of the second 50 units okay and then it is yet not a distinct because the first 50 unit is delivered as an input for the second 50 unit to be delivered at the latest stage so if that is the case then that is again not distinct okay not distinct because the first requirement okay whenever you deliver it can be used on its own it doesn't require okay it doesn't require the additional 50 unit to be sent then only it can be used so both need to be exist okay both need to be exist can be used on its own and here you have basically identified okay a separate delivery of the of the 100 unit which has been ordered by the customer is that okay sister yeah okay thank you sir any any other question any other question right yeah yeah if both product from the first and second batch is the same product is it still consider this thing uh if it is the same product okay if it is the same product but uh you have agreed to deliver it in two separate batches okay in two separate batches then it is distinct okay then it is this thing because you have basically agreed to deliver it at two different point of time same products but delivery at two different point of time it is still distinct okay because uh the other criteria is uh even when you send the first 50 this thing mean when you send the first 50 you can straight away use that first 50. it does not need to wait for the second 50 to be sent okay to be sent but of course you need to identify it clearly in the contract okay that you will send it like that okay you will send it like that so when the customer receive the first 50 unit you can straight away use it without having to wait okay the second unit to be delivered sister okay so thank you okay okay and so there is the criteria when it's sent it can be used and open and from the contract itself it is clearly separately identified okay separately identified and then it becomes this thing okay then it becomes a distinct but for creating but for creating a new contract okay it must be an additional goods okay it must be an additional goods okay so that's me for example uh for example uh a company a customer have ordered already 100 units suddenly the customers say i want to add another 50 okay another 50. okay so uh first is yes the other 50 will be distinct okay the other 50 will be distinct because that will involve possibly a and then you also need to look whether the price of the additional 50 more units is basically reflected stand alone selling price okay if it's reflected you stand a loan selling price and then only you create a new contracts okay then only you create a new contract if it does not reflect if it does not reflect stand alone selling price then it will go to no okay then you will go to no then you only will apply the criteria of this thing or non of course if it is if it is distinct okay if it is distinct and then you will terminate then you will terminate because you will need to evaluate okay evaluate the for example you might already have sent some okay you need to evaluate whether the remaining is distinct or not if it is distinct then because creating a new contract and the other one which is terminate and then create a new contract look might be very similar the only difference is in the first one when you create a new contract for additional goods or services your original contract is still on okay your original contract is still on in addition to your original contract you will write a new contract but at the bottom one okay the bottom one you will time you will terminate the original contract and then you write a new contract so that is the difference okay and that is the difference so if the additional goods and services are distinct and reflecting it only stand alone selling price then you just create a new contract for that additional good don't involve the original contract so the original contract is still in effect okay but if for example it does not reflect okay it does not reflect you stand alone selling price then you will go to no okay uh however the new uh the additional uh product might be distinct okay and then you just okay you just um uh terminate the old contract and then return the new contract for the remaining you need okay to be delivered to the customer is that clear yes examples the examples i will go back to what i have given to you and also the one which i have given to you okay i will give it okay with this then you go to the examples okay then we go to the example uh last class i give you these examples okay give you these examples so i will skip question one and two first question one and two is about allocating transaction price question three is a and four is about contract modification okay it's about contract modification so this question three okay so company pqr promised to sell 120 unit of product a to customer for 12 000 ringgit okay so that's mean uh the price for a unit of product a is 100 ringgit okay this product are transferred to a customer over a six-month period of time okay so that's mean it will be delivered on batches okay on wages the entity transfer control of each product at a point of time okay so that's mean it basically stated that whenever um whenever the customer receive the product the control is transferred that's mean there is no no issue in the customers to start utilizing it and use it because the the control has been transferred to the customer after the company have transferred the control of 60 unit of product a to customer the contract is modified okay so after they have delivered 60 unit contract is modified where there is an additional requirement to deliver an additional 30 units of product a to the customer although okay although the products are the same product okay are the same products but they are distinct because whatever which has been sent to the customer the customer can us can basically immediately utilized okay the issue here for example the control of the product has been transferred it is stated clearly in the contract that it will transfer over a period of six months okay over a period of six months so of course in total okay become 150 units of product a will be delivered to the customer so the issue here is okay how would you trade okay the additional requirement of delivery of an additional 30 units okay of product a which was not included in the initial contract in case in uh so you know that the product is already distinct there is a request of additional product and the product are distinct okay are distinct because each delivery okay each delivery uh it will come with a transfer of a control okay to the customer okay now how about the price okay so how about the price so in case a okay it was stated that when the contract was modified the price for the contract modification for additional 30 unit of product a is 95 ringgit per an additional unit okay so it's different it's 95 ringgit not 100 ringgit okay and this 95 ringgit reflect as 10 and loan prices have nothing to do okay it have nothing to do with the initial price of 100 ringgit in the initial contract of 120 unit okay so i've also based on negotiation they might come with a different price and this price have nothing to do with the original price of 100 ringgit it's since the price is also reflecting okay i stand alone price for that additional 30 units so the treatment is to create a separate contract for this additional product so the original contract to deliver remaining 60 ringgit remain okay don't touch that okay then you just create a new contract for 30 units of product it at the price of 95 ringgit uh which bring you to a total of 2850 okay so uh that would be uh the answer for case a okay okay so don't touch the additional uh don't touch original contract this new additional requirement or request are distinct and reflecting stand alone selling price so that will be the answer different from case b okay where is why my answer is moving okay okay okay question three case b different from case b in case b during the process of negotiating the purchase of an additional 30 units of product a the parties to the contract initially agree that the price will be 80 ringgit per unit okay so if this just stopped by this 80 ringgit is a stand alone selling price however the customer discovered that the initial 60 unit of product a transferred to customer contained minor defects that were unique to those delivered products so that's mean now because of that minor defects the company promised a partial credit of 15 ringgit per unit now there is a link already okay so most probably that you get that 80 ringgit because okay because of this partial credit which need to be paid by the company for the minor defects of the first 60 unit of product a delivered to the customer and the company and the customer agreed to incorporate okay incorporate the 900 ringgit credit okay because 15 ringgit per unit multiplied by 60 unit so they have agreed to uh to incorporate this credit of 900 ringgit into the price that the entity charges for the additional 30 units of product a okay off product a so although that the 30 units are distinct but the price which have been negotiated have been affected by the initial price of the original contracts okay of the original contracts so because of that okay so in in the treatment yeah in this case b is to terminate the original contracts okay is that is to terminate the original contract and just create a new contract okay and create the new contract for the remaining okay for the remaining for the remaining units to be delivered to the to the customer okay so that is um that is an example of terminating the original contracts and creating a new contract the case is because the price for the additional cost contract does not reflect its 10 alone selling price can you still hear me i have some disturbance of some noise can you still hear me yes sir okay sorry my neighbor actually okay so so that is an illustrative example okay and this is uh basically adopted from that illustrative example of mfr s15 okay one more example here okay one more example here this is with regard to a services okay so where company y have entered into a three-year contract to clean a customer office on a weekly basis okay the customer promised to pay 100 000 per year okay so the services for each year is distinct because the services of the first year is not depend on the services in the second year the same the third year services will not depend okay on the services in the first year and the second year the services itself in each year are distinct okay are these things it is on its own okay it is on its own the price was when when it was first originally agreed is for each annual cleaning services the customer need to pay 100 000 per year okay so the contract is on first you'll find the customer pay second year or so fine the customer pay another 100 thousand at the end of the second year then there is a contract modification okay at the end of the second year the contract is modified and the fee of the third year now is reduced to 80 000. in addition in addition the customer also agreed to extend the contract for an additional three years for a consideration of two hundred thousand that's mean if you divide it by three additional year for a year it becomes sixty six thousand six hundred and sixty seven if you calculate based on the stand alone selling price because now the uh the fees for a one year cleaning service is 80 000 okay if you multiply it by three years it should be 320 okay it should be three sorry uh 3 20 because there are remaining four years the third year the fourth year uh fifth year and six years so four years sorry four years multiplied by 80 it should be 3 20. but now the third year has been reduced to 30 000. three more years it has been checked at 200 000 so total now is only 280 000. it is not reflecting stand alone selling and stand alone selling price are they distinct yes these additional requirements are distinct but it does not reflect stand alone it does not reflect the stand alone selling selling price okay so now you will also go to know okay you will also go to no but seeing the services are distinct so what you do is you just terminate the original contract up to the point whatever you have completed then you write a new contract for the remaining four years of cleaning services okay of course now the new contract the contract price is um it's only 280 000 because if you use a standalone selling price should be 320 okay but it is not reflecting standalone selling price so you just create a new one terminate whatever have been completed for the first two years for the remaining four years you write a new contracts okay you write a new contract so in final exams okay you will need to do this kind of evaluation okay of course you might ask me whether you need to put a general entry or not you need to do an evaluation of the situation and then just need to identify whether you need to uh whether you need to create a separate contract or whether you need to terminate original and create a new one or whether you just maintain the original contract with some modifications any question you would like to ask is these three examples uh give you some idea uh on this contract modifications anything you would like to ask me so what yeah it's a previous example that you give us in week eight okay the one with the increased double price okay okay i go back to my example before okay i think that one is the one which might create a bit of confusion a bit of confusion so i go back to what i have given you before i think this one okay this one okay so this is the initial contract to provide 20 set of computer with processor intel celeron at the price of 1500 on first of january 2019 okay okay then illustration one i think this one is clear straightforward okay because on 15th of january the customer requires additional five set of computer with a profile a visa processor intel core i5 so of course this is a totally uh different product and it's also distinct the price also reflects standalone selling price 3000 per unit it doesn't have anything to do with the original price of 1500 this is the standalone price of this computer intel core 1.5 so this one is very clear this thing reflects standalone selling price so just create a separate contracts then you come to the second second one okay same information as initial contract however companies only able to deliver 10 units the agreement is actually to deliver 20 units but maybe for some reason okay they are only able to deliver because for the remaining 10 unit they cannot get that model at the initial price which they have agreed which is 1500 okay so the price now has increased to uh 1600 okay so of course each unit are distinct okay are distinct because whatever you have sent okay whatever you have sent can straight away be used okay can straight away be used however of course in the original contract you have not identified it to be delivered like that okay to deliberate like that ten and then another time okay and so what you have a grid is to deliver all the 20 units okay so this has been only happened because suddenly uh cannot get uh all the 20 at the same course okay uh maybe you only left with the uh the the the cost which have been estimated earlier 10 units so the other 10 unit when you want to get an additional 10 unit it is basically at a new price okay so yes individual computer science are distinct because whatever has been said you can use it straight away okay uh assuming that uh the transfer of the title is also been done and so on but you have not agreed it like that okay so the second criteria where it is separately identifiable is basically not math okay it's basically not met so that's why okay it is not distinct the price might be reflecting standalone signing price but it is not distinct okay because you have some problem in meeting the second criteria for this thing because you have not agreed it to be like that okay to be like that so you just read it because it is not uh it is not distinct okay it is not this thing therefore you just treat it as a modification okay to the original contract that's mean you just adjust there might be increase of 100 ringgit per unit for the remaining computers okay for the remaining computers i think this one is still okay but i think what the system have just raised might be this this one okay might be this one this looks very similar looks very similar so of course here i think uh a bit uh blur might not be two might not be too clear okay because the last version two and illustration three looks very similar okay looks uh very similar okay but in illustration three okay in illustration three the increase in price is almost double okay it's almost double so as if now you would have a totally different kind of a computer system okay different that is basically the assumption okay that is basically the assumption so if you uh you might also have justification if you want to uh to say it as the illustration number two you might also have a justification if if that significant increase in the price is basically assumed to reflect okay the specification of the computer which might lead it to be distinct okay uh which might lead it to be uh to be distinct okay uh sorry to be distinct okay to be distinct so uh so now what i have seen so if it is okay okay so i have not assumed this to be an additional to be an additional good or services this is just a replacement because the original contract already required 20 so you just need to fulfill to fulfill the remaining at the remaining 10 okay so the remaining 10 however okay however uh what has been assumed here is basically it is distinct okay it is this thing because they might have lead towards some modification but still in the original contract there is no additional units okay it's still the 20 unit but okay it is still in the original contract so that's why you don't create a separate contract but you just terminate the old contract and create a new one okay and create a new one illustration for i just combine both illustration 2 and illustration 3. this mean you have 50 50 50 percent situation of illustration 2 and 50 percent situation of illustration three if you look into uh the graphics i have shown you when this happen when you have both distinct and non-distinct soul companies need to use their judgment which one they want to use are they using distinct criteria or are they using a non-distinct criteria then it is up to the judgment of the company so whether they want to use this thing or whether they want to use a non-distinct so that is how i would elaborate okay i would elaborate the previous example illustration which i have given you before is that already enough for you sister or you need to ask further questions [Music] what is uh what is also very important whenever uh you decide your answers please provide with a justification okay with the justification because this is the issue now with a principle-based accounting standard a lot of judgement or interpretation need to to come in here so so whenever you provide your answer don't just stop with your answer provide me with your justification because i need to see what how do you justify for that answer so the your answers will be very flexible there is no one straight answers okay and there is no one free answers i also need to see your justification then only i can evaluate whether your answer is good uh or not okay so that is my advice that uh will uh this will always happen with a principle base because it doesn't because judgment need to come in from the companies side and i will basically open okay for all this kind of flexibility okay sisters who asked me before is that enough or you want to ask for the question okay i just want to reconfirm so illustration three um it's not an additional product yeah but it's uh it's assumed to be a different function is it that's i don't know yeah [Music] it is just a replacement to the original contracts no additional unit is required but this replacement of the of the of this uh of the remaining 10 you need are distinct in illustration two uh we assume it not to be distinct okay not to be distinct so that's why we trade it just as a modification okay just as a modification but in uh why this is non-distinct in illustration two is because we have problems with the second criteria where uh it should be identified earlier if it identified earlier that it will send 10 units and send another 10 units and then it is okay okay that is the second criteria okay but it is not like that when when it was first initially agreed it's also the same in the second in the third but we assume it to be distinct now because there is a significant changes in the requirement okay in the requirement uh of the remaining 10 units okay in the remaining 10 unit that is basically the assumption in the industrial tree so that's why we need to determine it we cannot just modify the initial contract we need to write a new one we need to write a new one and that's why we terminate it first and then write a new one to reflect the new the new criteria get off the remaining 10 units um sir can i yeah okay i'm a little bit confused so if the so if the product is distinct and the price does not reflect and the stand alone price then we cannot modify the contract right sir we have to terminate that contract and uh create a new contract right is that right sir uh first first you need to see whether there is an additional unit request okay additional unit request for example in original contract 20 you ask for another 20 now it becomes 40. that's the first one okay that's the first one is there any additional unit request okay if there is an additional unit request okay are they distinct and ideal price is yeah it won't stand a loan price if all is then just create a new contract don't bother about the original contracts okay there is no additional okay if there is no additional for example there is no additional units there are or there are not also reflecting stand alone prices then you will go to no okay then you will go to no it's not yes if this yes i mean that there is an additional unit request and it and the additional unit are distinct and the price is also extend alone prices then create new contract the original contract is still on however if there is no additional unit required yeah then he will go to no because there is no additional unit required and then you need to assess the remaining you need to be delivered you only access the remaining you need to be delivered i did distinct or not okay i did this thing or not if it if the remaining you need to be delivered that's mean there is no additional goods they are only remaining but you have modified in certain terms of the remaining unit then you need to uh to to to try to find out whether they are distinct or not if they are distinct terminate the old contract or original contract and create a new one if there are not distinct just modify the original contract if you have both then you need to use your judgement which one is more substantial if you believe that the distinct portion is more substantial then you can use this thing if you believe if the company believed that non-distinct is more substantial then you can use the treatment for non-distinct so that is how you treat it so the brothers who just ask me is that okay okay sir okay thank you sir okay so so that is how you need to look whether there is an additional unit or not if there is an additional unit for this additional unit you can create a separate contract if there are distinct and if their price is also their standalone prices if there is no additional unit or if there is an additional unit but uh the price is reflecting also the original price actually you can just combine okay actually you can just actually combine it to the original contract but of course there are two treatment either terminate the contract at that point of contract modification and write a new one in replacing the old contract or if they are not listing just continue with the original contract with the modification so that is how you treat it is that okay hopefully hopefully it's okay hopefully any further questions sister who asked me through what's up this morning i can't remember your name [Music] those who asked me through what's up a question about this hidayah can maybe i cannot remember yeah he wants me is it okay no yeah yeah thank you sir okay any other questions okay uh your exam will be on 18 correct yes okay okay i have discussed with dr fatima if i'm not mistaken uh we have discussed and we think we need to explain to you the format and dr fatima has basically taken this rule i'm not sure that she has asked all of you or not uh she's thinking of doing it on friday evening this is coming friday in the evening i'm not sure whether he has asked you or not because we have a department meeting in the morning initially we're taught to have it in the morning to explain to you about the structure of the christian okay and what would you expect and so on but now after my discussion with her i think she said she will arrange it on friday evening i'm not sure whether she has sent you any message if not you can also ask inshallah on friday evening and i would examine on 18 not the next weeks there is some other issue you can always contact me also no problem okay is that okay brothers and sisters on friday evening i'm not available because i have um final exam for le4 well i thought exam only started on 10 okay so you have an exam on it yeah that is what we we initially plan so might be if if there are only few we need to still go on but maybe you need to ask your friend because we need to tell you okay how the exam will be conducted okay so that is what initially i have agreed with dr fatima because she agreed to do that explanation okay on the structure of the final exam and based on our discussion report that friday evening is the suitable timeline because in the morning the whole morning you will have a department meeting but if you have exam if there are only few i think might be the best is because we still need to go uh to do it as soon as possible in order to prepare you might be unique to us yeah are your friends but if there are many i might be we need to read english about the possible time but i think if dr fatima have not asked you you can always about this because that is what i have agreed with her yesterday okay yesterday on this issue [Music] okay sorry sisters uh if there are only few of you might be we need to still go online but you can always discuss results okay okay sir thank you okay okay uh okay i think this is the the most important part i think i also give you um i also give you the first two question is basically a calculation okay a calculation in allocating the price between the first question is about a combination a combination of services between the handset and usage plan so how do you allocate between the two the second is about a discount okay so i think these two questions if i'm not sure okay it's already about 6 35 um okay for the first question okay for the first question there will be a combination of possible services okay sorry is my question already okay for the first question there will be a combination because in handset you have two model in the usage plan you have two usage plan so two uh model of handset and two useless plan so if you combine there will be a possible four combination okay for example uh y4 uh old model with the first user's plan and the second uses plan that's the first two combination and then you have the new model which is the first usage plan and the second uses plan so it will come total for combination so the issue here is only on how to allocate okay the price into both service because these two are two separate obligation okay the handset and the usage plan is a separate obligation so how would you do the allocations okay so for this question the answer is also from the illustrative example so i think i can just upload it although it is very long okay but later on you can also use this for your later purposes after graduation you can always refer to this illustrative example the first one is basically on is here the answer is here so you i think if you read the answer also there will be not much problem to you to understand because it's not too complicated let me just see whether i can find it quickly here okay so you have okay so if you can see this they will have four combinations all handset uh the 400 minute usage plan all handset 800 unit had 800 minutes new handset uh 400 minutes in their new handset 800 minutes okay 800 minutes so how do you get uh the total contract transaction price for all handsets the all handset will be given for free okay for 40 minute usage plan it will be 40 ringgit per month so if this is a two years contract it is 24 man multiplied by 40 ringgit that will lead you to a total consideration of the price is 960. yes the old handset will be given for free but it come as a package okay it comes as a package that's why you still need to allocate there is a price allocated to the handset for the revenue recognition and there is a price here which is allocated to the usage plan for the purpose of revenue recognition so you can look into the bottom that is how it is calculated yeah i think it's the same way as a material right because you need to use the stand alert selling price for the purpose of allocating the total transaction price yes it will be given for free but the standalone selling price for the old handset is 250. so that's why when you look into customer a calculation to get the allocated transaction price for the handset you use the standalone selling price of the old handset which is 250 then the total price okay at the 960 is already a standalone selling price for the usage plan for 400 minutes so if you add 200 then you need the numerator in calculating the transaction price allocated for the old handset is 250 divided by the total price 250 plus 960 then you multiply by the total transaction price of 960. so that's why you get 198 okay of course the remaining will be allocated to the usage plan so that is how you do it for um for the old hands i said 800 minute new handset 400 minute and also the new handset 800 minutes so what i will do inshallah i will also upload this so i just explained the first one i hope you will be able to read and understand the remaining calculation okay for the second question yeah okay yep yeah the 960 when how do you get it because it's 40 ringgit per minute the six 960 for 400 minute plan for a contract of two years two years okay for a two years contract so two years contract you have 20 yeah two years contract i think it is stated two years wait okay okay yeah two years contract okay so 24 month time 40 that's why you get 960. uh for b 24 man multiply by if you're not mistaken is 16. yes it's still ringgit for the 800 minute usage plan okay so that is how you calculate it okay and you can go for the remaining because the second one is also uh although it is simple but i don't want you to just miscalculate it okay so for the second question again this an issue an issue of discount voucher okay some issue with regard to discount right again okay but i just want you to basically allocate okay the price between the product and the discount voucher okay so company abc entered into a contract for a sale of product a for 100 ringgit as part of the contract company give the customer a 50 percent discount washer for any future purchases up to 100 ringgit in the next 30 days so if you okay if you uh purchase product a for 100 ringgit you will get a discount voucher and you can use that discount voucher for your future purchases up to 100 ringgit in the next 30 days but the company also intend to offer a 10 discount on all sale within the next 30 days as part of this seasonal promotion okay and it is stated very clearly here a 10 discount okay which is given as a seasonal promotion cannot be utilized in addition to the fifty percent discount voucher that's mean you cannot get sixty percent okay so that means you cannot get sixty percent discount because you get fifty percent discount uh from your discount watches and the company also uh basically offer a 10 discount as a seasonal promotion in the next 30 days but you cannot use it together that's mean you cannot get an additional 10 so that's me now your discount watcher okay your material right it's only forty percent okay it's only forty percent because for all other customers who have not do any purchases before they can still get the ten percent discount but you uh seen you have purchased before you get 50 50 discount for the purchases of up to 100 ringgit for the next 30 days so actually your material right is only 40 percent the difference between your discount voucher and the ten percent is can be offered to oil okay so that is what you need to be careful okay so the material right here is only forty percent the different the difference between what all the customers have not done any purchases before the kosovo can get discount if they don't get discount then of fine the whole 50 will be your material right okay but now your discount voucher value is the whole okay 50 but now it's only 40 percent because the company also give 10 discount for all other customers the likelihood is 80 you will use a discount voucher same concept before and you estimate on average the customer will spend about 50 ringgit okay so 50 ringgit so how to calculate the standalone understand a loan selling price of the discount voucher so average purchases is 50 ringgit the incremental discount is only 40 percent the likelihood of standing in a discount vulture is 80 so 50 ringgit multiplied by 40 multiplied by 80 percent so the standard loan selling price on the discount wheelchair is 16 ringgit that is what you have estimated okay and then you need when the customer purchase a product at 100 ringgit then you need to allocate okay between the price to product a and the discount watcher okay so the the the bottom one is basically the calculation of the allocated product a and to the discount watches so the stand alone selling price of the product of 100 ringgit they stand alone selling price on this assistant ringgit from there you do a [Music] so so you're muted okay so are you are you hearing what i have discussed with you just now no sir because suddenly i don't know i hear something strange in terms of the sound so the second part are you here can you hear me when i discuss this when i just discuss this alone can hear but cannot see your screen moving oh okay uh the second question correct [Music] yes okay so i don't know let me just see again bye okay uh i don't know it become again like that okay i think i think from the second question what i just what is the important point from the second question is although the discount voucher gives you 50 discount but seen the company is also offering a 10 discount to all customers within the next 30 days so the material rights calculation standalone prices for the material right which is discount vulture here should be calculated only based on 40 okay so the question also gives you the expectation on the average purchase which is 50 ringgit okay so the material right percentage and that will give you the estimate standalone prices of the discount watcher which is equivalent to 16 ringgit once you get that then allocate the price of the selling of product a product is of course 100 ringgit so the standalone price of the discount voucher is 16 ringgit okay inshallah i will upload again the revised okay answer in your google classroom okay in your google classroom so i will upload the revised answers for the previous example i will also upload the answers for the exercises i've given you last tuesday and also upload to you the illustrative example from mfis 15 okay so i hope that will help you and i hope insha allah on friday also dr fatima and mathematically he explained about the structure of the final exam and insha allah saying our exam will not be next if you ask me next week okay of course tomorrow or friday also possible and next week and then i will try to answer whatever question you basically posted to me i'm not sure about the the line will still be okay i think that is what i have planned for today uh are you still hearing me okay so i think that is what i plan for today if you still have question please inform me okay i did through what's up or email i will try to address your questions okay exam will be on 18th so hopefully you'll be fully repealed for the exam by that time okay so i think that's all unless if you still have some more questions sir sorry uh but yeah can i can i know how we get the average uh purchase of 50 ringgit i'm quite unclear with that it's already provided in the question what is it sorry yeah two at the end two at the end all right in the second paragraph okay you see it already okay yeah later you will also give back our ge right with uh okay i will give the answer yeah the answer i will give the answers i i hope you still have your answer with you yes do you have the answers stay with you so your grow answer is still with you i give i will give you the answers for your idea okay yes please sir thank you sir i'll carry on when you love i hope that is for today okay if you still have questions please contact me yeah yeah yeah brothers uh when you will most of the carry mark okay most of the career might actually be provided by dr fatima dr fatima have agreed to give me today so i'm waiting from her then i will basically key in into the system from my plaque is only the ge and your final exam so i'm waiting for atapatima inshallah he agreed to give me for me today he agreed to basically provide it for me today so once uh she provided it to me inshallah basically key into the system okay brother okay so thank you okay okay okay uh so i think i think that's all but you can always still communicate to me okay until the final exam okay so if i i i i intend to basically stop but of course the discussion can still continue so i think that's all for today's discussion hope uh i hope that will give you more understanding okay in order to prepare you for the final exam so thank you very much for your uh participation okay uh thank you very much again for your question so i think that's all for today i end my class today by salaam alaikum [Laughter] thank you very much