Progress Test 2

Question 1

construction activity, how to calculate contraction asset or liability?

Answer 1

cumulative cost incurred
plus cumulative gross profit recognized
less: cumulative billings

Question 2

warranty expense vs. warranty liability

Answer 2

warranty expense is incurred when sold to match, and warranty liability is recognized over time

Question 3

IFRS Goodwill calc

Partial goodwill
NCI

Answer 3

partial goodwill = Purchase price - FV of sub’s net assets

NCI = FV of subs net assets x NCI %