Specimen 2 . question number 4 , Royalty

This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.

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May 24, 2019 at 2:32 pm #517154
nikaido
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im just wondering the company receiving royalty did they make a debtor in regards to royalty and then credit impaired it

or were the royalty payments were simply being accounted for on reciept basis ?
May 24, 2019 at 8:15 pm #517231
P2-D2
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The royalty receipts would be recognised on an accruals basis, not a cash basis. It would be credit impaired if we anticipated that we wouldn’t then receive the cash.

Thanks
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