Hi Chris,
If the customer has paid us 6000 in advance and we deliver goods after 2 years lets say
when we increase the liability due to financing component , the amount we take to p and l for two years is it a finance cost or interest income
Thanks
Ask the Tutor ACCA SBR
Advance payment for the contract
Hi,
It will be an interest expense as it is the unwinding of the discount.
Thanks
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