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- November 25, 2016 at 11:23 pm #351515
If both of them are 11 months to year end, it would be fair comparison?
It is the inventory days, receivables and payables that are being grossed up to 12months-based on the book.
November 25, 2016 at 2:46 pm #351440Sorry, this is unrelated to the question above but I wasn’t sure if I should start a new topic since I have this pending.
I attempted a question[OAK] relating to an analytical review which is ratios related.
The P/L statement was 11months to Y/E.Is it necessary to translate the figures to 12months? – based on BPP answers.
During my attempt, I used the figure from the question directly because my defence is that I would have to round all my figures upwards if I was performing a 12months P/L.
November 25, 2016 at 2:35 pm #351426I have picked up that the question relates to revenue recognition. It did not specify contract.
November 24, 2016 at 2:01 am #351088Hi Mike,
The question was for 16 marks and split between matters to consider, risk of MM and procedures. I had several other points but I was most unsure about the above 4.
*They had given a forecasted PBT and Revenue in the question.
There was 2 issues discussed which was
1) revenue recognition
A development contract which was going to profit the company by £200,000 had extra additional cost of £350,000. Development is 1/3 completed and will take a further 15 months to finish. The contract pice is fixed and the additional cost must be covered by BillProcedures
– Inspect correspondence between architect to ensure that 350,000 includes all cost and cross reference with the quotations.-Instead of assessing the reasonableness myself, can I bring in an independent expert to assess the reasonableness?
2) NCA Held for sale
Management decided to sell division. It operates separately from the rest of business, and generates 15% of total revenue. Interest have been expressed and sale to be negotiated in 2 months time.Procedures
-Review BOD meeting to confirm that the approval to sell division ‘treasured homes’November 21, 2016 at 11:51 am #350302Yes! thank you very much ! 😀
November 21, 2016 at 10:34 am #350281Thanks Mike.
Yes, that was my point as well. I assumed obligation has been met since Dasset is meeting the expenses of the residents.
But, I was told by a tutor that obligation only exist if/when director/company releases an announcement promising compensation.
As ,that would only give rise to a valid expectation.Hence, i wanted a second opinion.
December 1, 2015 at 10:25 pm #286839Thank you ! 🙂
December 1, 2015 at 2:16 pm #286730is your point still relevant for the dec 2015 p3?
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