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Que 44 Bpp Carsoon

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Que 44 Bpp Carsoon

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • June 22, 2020 at 4:36 pm #574482
    Sneha00
    Member
    • Topics: 46
    • Replies: 20
    • ☆☆

    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?

    June 23, 2020 at 4:43 pm #574558
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    Answer 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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