Advance payment for the contractForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Advance payment for the contractThis topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts May 27, 2019 at 3:41 pm #517555 nikaidoMemberTopics: 41Replies: 89☆☆Hi Chris,If the customer has paid us 6000 in advance and we deliver goods after 2 years lets saywhen 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 incomeThanks May 28, 2019 at 3:12 pm #517689 P2-D2KeymasterTopics: 4Replies: 6898☆☆☆☆☆Hi,It will be an interest expense as it is the unwinding of the discount.ThanksAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In