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Q1 b What did you write about the decommissioning and restoration costs?
If I understood correctly, Mirror accounted for the restoration costs against the PPE at the initial recognition – that was really weird. I think they should have booked a separate provision as the item satisfies the definition of liability and not asset.
Yes, I attempted Q3.
a) The revenue was an easy one, I think. Just illustrated the five step approach with the example and unbundled the sale of turbine and maintenance, calculated SSP and then revenue.
b) the steel derivative bought in euro – I did not write much. I think that they need to charge the change in FV to PL because the FV changed due to the change of forex and not the underlying hedged asset.
c) testing for new turbines and how to record income from sale of energy. I was not sure… what did you write?Bicycles were low-value leased assets and could therefore be expensed directly to P&L (no lease asset recorded).
With cars I said that the company could have a policy for the same class of leased assets and treat them the same eventhough their contract terms and conditions might slightly differ – but not sure about it.