- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
- Posts
Dear Mike,
I am stuck with few questions in the exam kit.
They are Q89 and Q90 regarding Derringdo company.1. For Q89, how can I find non-current liabilities and current liabilities in respect of the grant?
2. I am not sure why in accordance with IFRS 15, costs of goods in a package is multiplied by some percentage to calculate the revenue on each package.
Thank you!
Work out how much of the grant is repayable
Then work out how much of that figure is repayable within the next 12 months and you have arrived at the current liability
Then deduct that figure from the amount calculated in step 1 and you have the deferred liability
Because we’re trying to calculate the extent of the revenue that is not yet earned and that figure is represented, in this case, by the sale price of packaged goods not yet delivered
To arrive at that sale price (revenue) we need to gross up the cost by applying the standard mark-up / margin percentage as appropriate
OK?
- The topic ‘revenue BPP exam kit’ is closed to new replies.