Question 2: Accrued Revenue Accrued revenue is the reverse of unearned revenue. That is, revenue will be recognized in the statement of profit and loss before actual receipt Example: Assume that on September 1, 2011 Fin Corp extended a loan of $100,000 to Borrower Corp. The loan is to be repaid within a year. The interest rate on the loan is at 9% Task: Compute the amount of the accrued revenue Question 4: Provisions (Creation, use, and reversal) Determination of a provision Problem 1: X corporation is pursued in the court of law for unlawful termination of a minority employee. X corporation estimates that, in similar past cases, the company settled the case for $50,000. Task: Create the provision Problem 2: Two years after, X corporation settled the unlawful termination and paid $50,000 Task: Use the provision Problem 3: Instead of paying, two years later, the court dismissed the case for procedural irregularities. Task: reverse the provision