C part
please explain me the treatment of claim here, what modification they are talking about and will the contingent liability be shown?
Why we will include the penalty cost in total cost?
Ask the Tutor ACCA SBR
Que 44 Bpp Carsoon
6y ago#1Answer is very confusing!
1, Carsoon suffered extra costs which were not their fault.
2. They should add the extra costs to 'costs' - i.e. expense them rather than disclose as contingent liability.
3. If they think they can get the costs back from the client, they could add them on to the bill (revenue).
That's my best take on this one.
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