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Ecoma b1. Provision for roof

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Ecoma b1. Provision for roof

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 29, 2023 at 11:56 am #695712
    japime
    Participant
    • Topics: 24
    • Replies: 9
    • ☆

    Can it be argued that provision can be made for the roof since their business practice is to be sustainable, so they created a constructive obligation for themselves as the new roof offsets the company’s CO2 emissions?

    November 30, 2023 at 7:16 am #695749
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    Interesting. 🙂

    I think the answer remains as NO (for the present) – reflects future intention rather than present obligation

    Only recognise liability once roof has been done (or at least until they pay for it)

    December 1, 2023 at 12:05 pm #695797
    japime
    Participant
    • Topics: 24
    • Replies: 9
    • ☆

    Thank you for the response. If it is a well argued point will it still score marks even if the classification is wrong though?

    December 3, 2023 at 7:55 am #695913
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    Most of the marks!

    But IAS 37 was written to stop companies ‘providing’ for future asset expenditure. So it’s a sensitive point. 🙂

    🙂

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