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P2-D2.
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boma77
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Dear Tutor,
in question 4 of the September / Decemeber 2015 exam Tang enters into a contract on 1 December 2014 to construct a printing machine on a customer’s premises. On 4 December 2015 the contract was modified but it was still a single performance obligation.
Could you please explain why this is a non-adjusting event? I tought this would be an adjusting event, because it relates to the contract from the previous period.
Thank you.
P2-D2
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Hi,
It is because the condition that caused the amendment was not in existence at the reporting date, so although the contract was in place the amendment wasn’t and hence a non-adjusting event.
Thanks
boma77
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