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contract

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › contract

  • This topic has 1 reply, 2 voices, and was last updated 4 weeks ago by P2-D2.
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  • December 24, 2022 at 12:26 pm #675071
    xyzc
    Participant
    • Topics: 342
    • Replies: 91
    • ☆☆☆

    In the onerous contract example in the notes, why the market price used was 22 and not 30 whilst the fall in price was in the month of december and not for the rest of the months. Also which two months should be used. Should it be the two months other than december in which case it should be 30 and not 22 or is it the last two months in which case it should be 30 for one month and 22 for the next.

    December 30, 2022 at 9:41 am #675226
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6440
    • ☆☆☆☆☆

    We are looking to find the amount to be provided for under the onerous contract and so we are using the information in the question regarding what would happen if we ceased the current operations.

    Thanks.

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