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Chapter 13/example 4

This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.

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August 20, 2016 at 10:44 am #334183
voudouri
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Costs recognised 375000
Which is the calculation for this amount?
August 20, 2016 at 11:40 am #334191
MikeLittle
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Because a loss is forecast, we have to recognise that loss in full as soon as we foresee it
If revenue is $325,000 and there’s a forecast loss of $50,000, then costs recognised must be $375,000
Have you watched the lectures at all?
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