Purchase orders  LO8 An airline places a non‐cancellable order for a new aeroplane with one of the major commercial aircraft manufacturers at a fixed price, with delivery in 30 months and payment in full to be made on delivery. Required1. Under the conceptual framework, do you think the airline should recognise any asset or liability at the time it places the order? 2. One year later, the price of this aeroplane model has risen by 5%, but the airline had locked in a fixed, lower price. Under the conceptual framework, do you think the airline should recognise any asset (and gain) at the time when the price of the aeroplane rises? If the price fell by 5% instead of rising, do you think the airline should recognise any liability (and loss) under the conceptual framework?