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Hi Mike,
according to the calculation, 31.12.2005 C/F PV of FO is 1135, it is a Obligation. FV of PA is 940, this is a Assets, these are clear. But C/F PSC for CE 35 should be Obligation as I understood and C/F UGLY 106.095 should be also Obligation. How can you add them together with 940 and to compare with 1135 to get the net liability??? But as my understanding, it should be 1135+35+106.095-940, could you please clear my mind? Many thanks!
well as we know that DR. balance can only b expense or asset and here the DR. balance can’t be written as expense becoz not recognized yet so we hav 2 add that to Asset n then recognize as an expense
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