Was doing my revision from PBB,
under revision kit 2020 155 Hawthorn Enterprises Co
there is a statement stated "Conditional consideration should be recorded as contract assets"
I thought conditional revenue excluded from revenue if being recorded in revenue, and it should be contract liabilities.
DR. Contract liabilities
CR. Revenue.
is my understanding wrong?
ACCA Forums
AASubstantive procedures on class of transaction - presentation
4y ago#1But to be presented as a liability, something must have a CREDIT balance. The DEBIT balance will be called contract ASSET. Even if there are contract liabilities, they cannot be offset unless there is a right to offset (general principle of IAS 1).
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Don't have access to the question. The following link is to financial reporting resource but seems somewhat applicable to question you are asking about (IFRS15)
https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/assets-liabilities.html
Hope this is of some help.
Alright, finality I understand and got the point.
Thank you do much!
Thank you so much.. really hopeful!
You are welcome.
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