F2 - Financial Statements Notes

Question 1

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A public entity sells steel for use in construction. One of its customers accounts for 43 percent of sales, and another customer accounts for 40 percent of sales. What should the entity disclose in its annual financial statements about these two customers?

Answer 1

• The amount of the entity’s revenue from each of the two customers.
• reason is because the two customers have significant sales -(increases risk of loss)