[didicasper]

i want to talk about my answer on q3 in details and wanna hear your comment on how u did.
For (a) Finance lease
i wrote the finance lease defination, followed by the 6 indicators for a finance lease. then i pointed out about the lease term being covered the major part of the UL and total lease payment being more than 90% of the FV of the asset as the RV being zero as they disposed them as clinical waste. ( now i see that they also mentioned about the instrument as a specialised item, i didnt notice in exam, i was nervous )
then i subhead the accounting treatment
to recognise the PV of total lease payment as lease receivable and sale revenue. then when they transfer the instrument to hospital, to recoginse out from the inventories and COS respectively. As the lease is FOC, i stated to calculate the lease payment on the basis of Stand alone price, under IFRS 15.
I didnt answer for part (c) as i didnt have enough time.
but for part (b) development exp, i wrote the DE’s defination and the 6 factors that entity must demonstrate and applied to the Medsupply having the commercial and technical feasibility for use or sale. so i stated to capitalise the know how $3m but to recognise the cost of $50,000 each for equipment in the inventories costs.
As for the provision part, I stated the provision defination followed by the lawer’s comment and i said to disclose it in the notes to the FSs as contingent liability, it’s defination also. but I forgot to mention about the amount to disclose. (i regret that i forgot ) i have a very slow handwriting and the translation of my logic to english is not that fast. so couldnt touch part(c). i also couldnt finish SOFP in Q1 (only finished workings i m worried sick and trying to count my marks. T T how did u find my answer? do u think i could gain, may be 15 marks from Q3?

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