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Hi tutor, i need help on this question. ):
Sandown has a financial year ended 31 december 2008. Sandown’s revenue includes 16m for goods sold to pending on 1 oct 2008. The terms of the sales are sandown will incur ongoing service cost of 1.2m per annum for 3 years after sales. Sandown make a gross profit of 40% on such service work.
Briefly explain how above transaction should be treated under IAS 18.IAS 18? No way, sorry!
IAS 18 no longer exists and has been replaced by IFRS 15
May I ask you to read the chapter on IFRS15 in the free course notes downloadable on this site and then, if you still have a problem, post again
If you do post again, I’ll need to know which accounting reference date I’m working to – I presume that it’s 31 December 2008 but I need confirmation of that
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