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percentage basis fee

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › percentage basis fee

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
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  • August 23, 2021 at 5:49 pm #632652
    Noah098
    Member
    • Topics: 935
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    maam in bibi &co why is there any problem with percentage basis fee arrangement for corporate finance services? Because the std states that contingent payments are allowed for non-audit services as long as the fees is not significant

    August 24, 2021 at 7:25 am #632705
    Kim Smith
    Keymaster
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    Bibi & Co? I think it depends what the corporate finance service is.
    Since fee income is a matter of self-interest, perhaps a % based on the outcome increases the self-interest threat – and therefore the fee should rather be fixed.

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