Question
Based on IAS 37 on contingent assets and liabilities, answer following case: There is a contract with Ministry of Health for 1,000,000 masks with a
Based on IAS 37 on contingent assets and liabilities, answer following case:
There is a contract with Ministry of Health for 1,000,000 masks with a selling price of $400. Chinese supplier indicates that as a result of a CONTINGENCY price went up from $230 to $330, which added to all internment costs leave product at a cost of $430 pesos per unit. You left a GUARANTEE of $28 million that would be charged in case of NON-DELIVERANCE with delivery of products. Are you facing an ONERIOUS CONTRACT? If yes, record your accounting and explain your reasoning.
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
