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AIN3701
EXAM PACK
DISTINCTION QUALITY
UNISA EXAM
,AIN3701 Assignment 3 2025 MEMO
Deadline: 8 August 2025, at 20:00
(a) Open a document in Word.
Save this document as yourstudentnumber_Surname.docx, for example
12345678_VanStaden.docx.
Question 1
Based on the dialogue provided in the assignment, create a fishbone
(Ishikawa) diagram to visually map the likely causes of the recent membership decline
at FitNation Gym.
Identify and include at least four root cause categories.
Under each category, provide a minimum of two contributing factors based on the
meeting discussion.
,My diagram visually represents the likely root causes of the recent decline in gym
membership at FitNation. The problem (Membership Decline) is placed at the head of
the diagram. The four main cause categories People, Processes, Marketing, and
Facilities are based on insights from the management meeting. Under each category,
contributing factors such as unmotivated staff, lack of follow-up, outdated promotional
efforts, and poor maintenance of equipment are listed to identify where FitNation may
need to intervene to reverse the trend.
, QUESTION 2
(a) Continue to work in the same Word document as mentioned in question 1(a)
Number the following question as: Question 2 (a) in your Word document.
In line with IFRS 15 - Revenue from Contract with Customers, identify all distinct
performance obligations embedded in the 24-month contract with members.
Under IFRS 15 each promised good or service that is distinct is a separate performance
obligation. In FitNation’s 24-month membership contract, the following are distinct
promises:
Gym membership services. Access to the gym facilities, classes and support (delivered
over 24 months).
Branded towel (free after 8 sessions) a promised good distinct from the service.
Branded T-shirt (free after 16 sessions) a separate promised good.
Gym bag (free after 24 sessions) another distinct promised item.
These incentives meet the “material right” criterion: they are additional goods customers
only get by meeting attendance conditions, so each is treated as a separate
performance obligation. For example, IFRS guidance on similar gym promotions (a free
sports bag with membership) notes that the membership and the free item are distinct
obligations
Likewise, IFRS 15 treats an option to acquire discounted goods as a separate perfor
mance obligation (a “material right”) and allocates part of the contract price to it
AIN3701
EXAM PACK
DISTINCTION QUALITY
UNISA EXAM
,AIN3701 Assignment 3 2025 MEMO
Deadline: 8 August 2025, at 20:00
(a) Open a document in Word.
Save this document as yourstudentnumber_Surname.docx, for example
12345678_VanStaden.docx.
Question 1
Based on the dialogue provided in the assignment, create a fishbone
(Ishikawa) diagram to visually map the likely causes of the recent membership decline
at FitNation Gym.
Identify and include at least four root cause categories.
Under each category, provide a minimum of two contributing factors based on the
meeting discussion.
,My diagram visually represents the likely root causes of the recent decline in gym
membership at FitNation. The problem (Membership Decline) is placed at the head of
the diagram. The four main cause categories People, Processes, Marketing, and
Facilities are based on insights from the management meeting. Under each category,
contributing factors such as unmotivated staff, lack of follow-up, outdated promotional
efforts, and poor maintenance of equipment are listed to identify where FitNation may
need to intervene to reverse the trend.
, QUESTION 2
(a) Continue to work in the same Word document as mentioned in question 1(a)
Number the following question as: Question 2 (a) in your Word document.
In line with IFRS 15 - Revenue from Contract with Customers, identify all distinct
performance obligations embedded in the 24-month contract with members.
Under IFRS 15 each promised good or service that is distinct is a separate performance
obligation. In FitNation’s 24-month membership contract, the following are distinct
promises:
Gym membership services. Access to the gym facilities, classes and support (delivered
over 24 months).
Branded towel (free after 8 sessions) a promised good distinct from the service.
Branded T-shirt (free after 16 sessions) a separate promised good.
Gym bag (free after 24 sessions) another distinct promised item.
These incentives meet the “material right” criterion: they are additional goods customers
only get by meeting attendance conditions, so each is treated as a separate
performance obligation. For example, IFRS guidance on similar gym promotions (a free
sports bag with membership) notes that the membership and the free item are distinct
obligations
Likewise, IFRS 15 treats an option to acquire discounted goods as a separate perfor
mance obligation (a “material right”) and allocates part of the contract price to it
