[lanresman]

Grateful to have passed with 61% ?

[lanresman]

My answer was for them not to recognize a provision as there is no present obligation as a result of past event. There was no information in the question to suggest that the Company had created a constructive obligation as a result of them performing the reconditioning through past practices. Also, there was certainly no legal obligation on the Company to perform the reconditioning and the Company could change its plans on the reconditioning at any point in time.

[lanresman]

I think the standard that applied in that question was IAS 40 investment property and not leases. Since the property was being kept for rentals, it can be rightly classified as an investment property.

[lanresman]

This was similar to my workings too. ??

[lanresman]

The multiple choice questions were so tricky. Thankful for the theory questions. Cash budget and lease versus buy decision question would really help lots of us earn marks that would enable us pass.

[lanresman]

I passed at the 1st attempt. All thanks to open tuition.

[Author]

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