Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Specimen 1(b)
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- November 26, 2018 at 8:43 am #485992
Hi,
(1) How to clearly differential whether the item should be contingent liability and financial liability? Both have constructive obligation
(2) An executory contract is where the contract is settled at a later date and not immediately.
Contingent liability is possible obligation arises from past event whose existence will be confirmed by occurrence of one or more uncertain future event not within the control of entity.
But executory contract not within contingent liability.A contingent payment based on the future profit seems meet the definition of contingent liability but it is executory contract.
It seems contradict. How can decide whether should under contingent liability or executory contract?Thank you
November 29, 2018 at 3:42 pm #486457Hi,
Which specimen exam is this please? There are two in issue.
Thanks
December 2, 2018 at 3:18 am #486735Hi,
Specimen exam 1
Thank you
December 3, 2018 at 8:53 pm #487057Hi,
There is a set of solutions written by ourselves here at OT that should answer your questions.
Thanks
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