Hi
example 1 on page 54 of the notes.
Suppose we made the payment after one and half year from the date that we were notified, how will the discounting be done? should i discount back 2years and unwind for the number of months to the reporting date. Again i will be exaggerating on the provisions at the date of notification.
thanks.
Ask the Tutor ACCA FR
DISCOUNTING AND PROVISIONS
Hi,
No you would need to discount by one and a half years but that is not going to be seen in the exam. You will only ever be given full years to discount by.
Thanks
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