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BPP Q64,66

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › BPP Q64,66

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarMikeLittle.
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  • November 22, 2016 at 5:57 pm #350722
    Avatarcaoimhin23
    Member
    • Topics: 14
    • Replies: 3
    • ☆

    Hi Just wondering for a contract where the percentage of performance obligations satisfied is measured according to certificates issued by a surveyor.

    The certified complete = 40%

    When working out recognise profit, It is a loss of 3000. This is then brought in to work out the Asset. Should this be 3000 by 40% or because it’s not a profit just 3000?

    November 22, 2016 at 8:52 pm #350757
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Where a loss is forecast, it should be recognised IN FULL as soon as it is anticipated

    Have you worked through the course notes on this subject? It’s clearly explained and illustrated in those notes and also in the associated lecture

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