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Future operating losses

Former userFormer user7y ago

[Content removed at user request]

P2-D2P2-D2Tutor7y ago#1
Hi, Because in this instance you have an onerous contract, where the cost of incurring it exceed the benefits from it. As it is contractual then the onerous contract is provided for. There is no obligation to make future operating losses and hence they cannot be recognised. Thanks
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