- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
- Posts
This ones a bit long to type out. I hope you have access to it.
I’m confused by the voucher scheme. It says that 80 will be sold @£125 if the promo takes place immediately
I took this to mean that the sales would happen immediately. I thought the comment about attending one session per quarter was a red herring, as the sales take place in Q1.
However the answer spreads the sales over the year.
Are we expected to treat them as pre-payments for the upcoming quarters? I haven’t seen that in this syllabus.
Thanks
I do have the question and answer 🙂
Although the vouchers are indeed sold immediately (and therefore, were it relevant, the cash would be received immediately), the promotion prospects are based on the profitability. For profit purposes the income should be shown in the quarters in which they attend the sessions (just as the costs are charged in each quarter).
Although doing this is not specifically mentioned in the syllabus for Paper PM, it is assumed knowledge from Paper FA and so the examiner is perfectly entitled to do this.
- You must be logged in to reply to this topic.