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+--- Thread: IAS37 warranty provision (/thread-ias37-warranty-provision)
IAS37 warranty provision - fahad2119 - 11-02-2009
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
- Choohan - 11-13-2009
The scenario of the question is unclear. To give an opinion one should know the scenario completely.
So it is advised that you should write the complete scenario.