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Expense recognition Indicate if each of the events described gives rise to a revenue or an expense under the Framework. If they do, what would be the other side of the transaction?
1 A bank loan of $30 000 is obtained, with the company signing an agreement to repay the amount in six months, together with interest of 6 per cent.
2 Electricity used in the past month, worth $1540, has not been paid for.
3 A $3000 cheque is received from a tenant for three months’ rent in advance.
4 A company signs a two-year employment contract with a marketing manager for $250 000 per year. The marketing manager will start work next month.
5 Wages of $34 000 are owing to employees at year-end for work done during the year.