FRPricewell - June 2009

Hi Chris you appear to be looking at an original past exam question which has not been updated to take account of the change in exam format (Qs in Section C will be only 15 marks, not 25 marks) or, more importantly, technical changes in IFRS. I suggest you disregard it as accounting for construction contracts will be examined under IFRS 15 (not IAS 11) and also in this Q, the lease would be accounted for under IFRS 16 (not IAS 17).