Other Things To Note

Question 1

Provisions (3 stage test)

Answer 1

1-Probable outflow of economic benefits
2-As a result of a past event
3-Reliable measure amount to be paid out

Unlikely that we would know the above.

To audit this we’d need:

Legal documentation
Legal notes and likelihood and expected pay outs

Disclosure note must provide info on this area to users

Question 2

Revenue recognition

Answer 2

When rights and responsibilities of ownership are transferred to buyer
(Need to understand contract to see when this should be recognised )