- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › significant financing component
Hello
What is significant financing component under IFRS 15?
Relevant when assessing the bad debt allowance for RECEIVABLES.
Tom buys a chair from a shop for 1,000 on 30 days credit – financing component NOT SIGNIFICANT
Mary buys an identical chair from a shop for 1,500 on 4 years ‘interest free’ credit. Interest free is of course a marketing ploy! SIGNIFICANT FINANCING COMPONENT
So where is the dividing line? A judgement call, but more than one year’s credit is what I would go for.