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- December 8, 2015 at 6:19 pm #289228
I said the revenue should not be recognised at the end of year 1 as a condition for a contract is not met – consideration must be probable, which it wasn’t
Also mentioned an adjusting event for the revenue as a contract condition was subsequently met and the consideration became probable. And they should recognise 65% on a % completion basis as it meets the conditions.
Simultaneously rec’d and consumed, created for customers use etc.
It was really hard… no knowing what was going through the examiners head.
Did anyone do the licences question in 2?
December 8, 2015 at 6:10 pm #289211@mentosshane, you forgot the interest component calculated on the opening liability which I got at approximately 0.50.
December 8, 2015 at 6:08 pm #289207@Nish, it wasn’t the end of the economic life of the land. It could have had other use. They had just decided to sell it as it no longer fitted their intention as a dumping ground.
December 8, 2015 at 6:03 pm #289195The foreign loan was I/C so needed to be removed at it’s closing liability from the net assets at reporting date.
That’s how I treated it but again, probably wrong.
December 8, 2015 at 6:00 pm #289190Well the opening obligation moves by Dr past service cost for curtailment, Cr current service cost, Dr contributions paid into pension, and Cr for interest based on bond rate.
That gave me a closing liability which was assessed to be 17 by the actuarists… 6.5 was the re-measurement component. Not saying that’s correct but it’s what I did.
I don’t remember the exact numbers tbh.
December 8, 2015 at 5:53 pm #289177^^ Sorry but I got 6.5 for OCE, which was a debit to OCE and a Credit to the obligation.
Did anyone do question 2 a) licenses.
December 5, 2013 at 2:20 pm #150655Hold on,
Q5) it was classified as Operating lease for 12 years prior so must have been treated as an operating lease for every prior period.
It was clear that the solution was to Capitalise both the 7000 and the 5000, calculate the dep’n to date… hit the SPL with the depreciation for the period and put the CV on the SPL.
The 5000 also created a provision for restoration which needed to be unwound on an annual basis.
IF the question wanted you to re-cassify it as a Finance Lease, it would have provided the information to enable you to do so…. Surely? As in the FV of the building, the finance costs, the lease payments???
People over thought this in my opinion.
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