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On 1 August 2012, Machine A was delivered to the premises of Building Together Pty (Ltd). On this date the machine was recognised at an

On 1 August 2012, Machine A was delivered to the premises of Building Together Pty (Ltd). On this date the machine was recognised at an amount of R1 800 000. On 31 July 2013, the business paid the supplier R2 070 000. The payment period was longer than normal credit terms. Please explain why the business recognised Machine A at a different amount to the amount paid to the supplier on 31 July 2013

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