Discuss the principles and practices which should be used in the financial year to 30 Nove

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Discuss the principles and practices which should be used in the financial year to 30 November 2008 to account

for:(c) the purchase of handsets and the recognition of revenue from customers and dealers. (8 marks)

Appropriateness and quality of discussion. (2 marks)

参考答案:

Handsets and revenue recognitionThe inventory of handsets should be measured at the lower of cost and net realisable value (IAS2, ‘Inventories’, para 9). Johanshould recognise a provision at the point of purchase for the handsets to be sold at a loss. The

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