User Account

All Pages

Explain how tpg ltd. should record million in the accounts

Assignment Help Financial Accounting
Reference no: EM132526021

TPG Ltd. signed a 20-year contract to offer its NBN network service to BHP Billion Ltd. for $300 million. The contract was completed and signed by both companies on the last day of financial year, 30 June 2019. The TPG Ltd. received an upfront payment of only $40 million from BHP Billion Ltd. on that day. It decided to recognise 'revenue' of $300 million for the financial year 2018/2019. Discuss fully how TPG Ltd should account for the contract amount, justifying your answer by reference to relevant definition and recognition criteria of relevant accounting standards.

You are required to answer the following two questions:

Question 1: Discuss in your opinion whether it is correct for TPG Ltd. to recognise 'revenue' of $400 million for the financial year 2018/2019 or not. You should justify your comments by using references to the Conceptual Framework for Financial Reporting or other relevant AASBs.

 

Question 2: Explain how TPG Ltd. should record $40 million in the accounts for the financial year 2018/2019. You should refer to the Conceptual Framework for Financial Reporting or other relevant AASBs to support your explanation

Reference no: EM132526021

Questions Cloud

Has been any goodwill on the acquisition : Has there been any goodwill on the acquisition? Or any gain on bargain purchase? Where would you find it in the financial statements
What are the risks of bias : What are the risks of bias and how concerned should financial managers be about bias in the process of valuation and equity research?
Interesting assignments : Interesting Assignments - What were some of more interesting assignments to you?. Interesting Readings - What reading or readings did you find most interesting
Severe mutation than a point mutation : Why is insertion/deletion often a more severe mutation than a point mutation?
Explain how tpg ltd. should record million in the accounts : Explain how TPG Ltd. should record $40 million in the accounts for the financial year 2018/2019. You should refer to the Conceptual Framework
When dna is being replicated along the lagging strand : When DNA is being replicated along the lagging strand, the DNA replication has to be re-initiated again and over again. When DNA is being replicated
Problem - budgeted income statement : Problem 1 - Budgeted Income Statement. Provide a budgeted income statement for each of the four quarters and for the entire year of 2020
Differences between photosynthesis and cellular respiration : Discuss four differences between photosynthesis and cellular respiration: First summarize each process,
Scotiabank-kabbage partnership : What are the success factors in the Scotiabank-Kabbage partnership? Under what circumstances should Scotiabank seek fintech partnerships?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Full responsibility for any unsold shares

Question 1    Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at $2,805. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.3112? Question 2    Which one ..

  Fair market value using a discounted cash flow model

When measuring an impairment loss for a long-term operating asset, must firms determine the fair market value using a discounted cash flow model? Explain

  Describe alternative methods of estimating fair value

Give several examples of events that would cause an asset to be tested for impairment. What is the best evidence of fair value?

  Perfect gas corporation supplies compressed gases to

perfect gas corporation supplies compressed gases to business customers. data regarding the stores operations given

  Components of stockholders equity

Identify the major components of stockholders equity by examining the Statement of Stockholders Equity.  What types of accounts and transaction resulted in major changes in the Stockholder Equity accounts during the most recent year?

  Wynn inc has a agreement to construct a large hotel for

wynn inc. has a agreement to construct a large hotel for 12000000. the contract was signed on 2nd january 2010 and it

  Analyse divisions according to how fit into the bcg matrix

DEF Co is a large company which has three divisions; a restaurants division, a pubs division, and a casino division. Analyse the divisions according to how they fit into the BCG matrix.

  Discount is amortized in the first year on the bonds term

A company issues a 10 year 7.5% $1 million dollar bond which pays interest semi-annually. The issue price is $966,024.18 Using the effective interest method, how much of the discount is amortized in the first year on the bonds term?

  What is the stock price using the dividend discount model

Determine the expected growth rate for dividends. Determine the price earnings ratio. What is the stock price using the P/E ratio valuation method?. What is the stock price using the dividend discount model?

  Tax treaty exempts interest payments from withholding taxes

USAco, a domestic corporation, is the wholly-owned U.S. subsidiary of FORco, a foreign corporation. The U.S.-Country F tax treaty exempts interest payments from withholding taxes.

  Calculate the inventory turnover

Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $167,228; beginning inventory $112,286; cost of goods sold $380,216 and sales revenue $689,374. ..

  What is the economic rationale

What is the economic rationale that the bad debt expense would be higher in the first quarter than in the later quarters?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd