Company A is due to enter into a contract with Business B to supply a certain quantity of goods next financial year. If Company A fails to supply the contracted quantity of goods to B$,$ Company A will be required to pay a penalty fee totaling $20\%$ of the contracted value of R $1000000.$ This is despite the fact that A has a $100\%$ record of delivering on similar contracts historically. Which of the following statements are correct in relation to the accounting treatment of the penalty payment for this contract in the current financial year?