11-02-2009, 04:15 AM
subjectF7(ACCA)
topicias37 warranty provision
ques a detailed information is given about a shoopkeeper business includes faulty returns past assumption, markup of 40% etc
the requirement is to cal. the amount of provision and in the solution the amount of profit is considered as a provision that should be made
my question is y the author didnt consider faulty returns ???
secondly can a profit be recognize as a provision ????
thank u
topicias37 warranty provision
ques a detailed information is given about a shoopkeeper business includes faulty returns past assumption, markup of 40% etc
the requirement is to cal. the amount of provision and in the solution the amount of profit is considered as a provision that should be made
my question is y the author didnt consider faulty returns ???
secondly can a profit be recognize as a provision ????
thank u