December 2022 ACCA exams (5 - 9 December)

Instant Poll - Read and post comments:

AA exam was >> | AAA exam was >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

IFRS 15 question in September/December 2017 past exam paper

This topic has 2 replies, 2 voices, and was last updated 4 years ago by benagbo1.

Viewing 3 posts - 1 through 3 (of 3 total)

Author

Posts
March 3, 2018 at 2:56 pm #439901
benagbo1
- Topics: 1
- Replies: 1
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,
Thankyou
March 4, 2018 at 8:42 pm #440207
P2-D2
Keymaster
- Topics: 4
- Replies: 6317
Hi,

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
March 5, 2018 at 3:33 pm #440362
benagbo1
- Topics: 1
- Replies: 1
Thank you!
Author

Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.