- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
Please I got confused on question 3a (sept/dec 2017 P2 past exam) which has to do with when to recognise the revenue involved in the contract and how the allocation was done. I thought the warranty was a free one, why was the transaction price now allocated to it.
Please can you explain,
ThankyouHi,
The standards don’t allow anything for free, there must be a value attached to it. The answer is therefore working out the value of the warranty within the contract.
Thanks
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.