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@chrisbugeja92 said:
I believe its that type of provision relating to a constructive obligation similar to a warranty provision.@vorkath said:
On second thought, I think you’re right… we don’t have to pay rebate until they actually buy the specified amount .. Which question was this again?I believe its that type of provision relating to a construction obligation similar to a warranty provision.
With regards to question 2a I think it was also important to mention that there were no industry ratios which could have been used to juxtapose the company’s performance with that of the whole industry to further deduce a clearer picture of the company’s financial situation.
Moreover for question 4b I used the 5 C’s (components affecting price) being corporate objectives (and there was a reference to the mission statement in the question), cost, control, competitors and customers.
One question: Following the introduction of ISA 701 Communicating Key Audit Matter in the Independent Auditors report im really finding it hard to distinguish between when to use EOM paragraph and when to highlight an issue as KAM. My understanding is that an Emphasis of Matter paragraph is used to stress the importance of an item ALREADY DISCLOSED in the the financial statements which is fundamental to users’ understanding of Financial Statements while key audit matters are those significant audit matters that were communicated to the audit committee and the board so information which is not available to other users of the financial statements.
Am I being correct in my distinction between the two?