IAS 21 Flashcards
1
Q
Total cost of contract = US$ 100,000.
Payment to be made in accordance with the following schedule:
Payment Dates Amount Payable
On signing the contract July 01, 20X6 US$ 20,000
On shipment* September 30, 20X6 US$ 50,000
After installation and test run January 31, 20X7 US$ 30,000
*(risk and rewards of ownership are transferred on shipment
. The following exchange rates are available:
Dates Exchange Rates
July 1, 20X6 US$ 1 = Rs. 160.50
September 30, 20X6 US$ 1 = Rs. 161.00
December 31, 20X6 US$ 1 = Rs. 161.20
January 31, 20X7 US$ 1 = Rs. 161.50
Required: Prepare journals to show how the above contract should be accounted for under IAS 21.
A
See question 13
Note: in 2nd entry, asset ki price as a balancing figure nikalo.
