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FR? revision kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › FR? revision kit

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
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    Posts
  • February 28, 2020 at 5:10 pm #563472
    jasmisuhail
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    $1m in relation to a sale to a new customer on 31 dec 20X1. The control passed to the customer on 31 dec 20X1. The $1 million is payable on 31 dec 20X3. Interest rates are 10%.

    What is the correct treatment for this activity? And which standard is it related to?

    February 29, 2020 at 3:30 pm #563575
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    It is treated under IFRS 15 as it is in relation to revenue. We record the amount at fair value (discount to PV) and then record interest income.

    Thanks

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