How should the operator account for the backhoe

Assignment Help Accounting Basics
Reference no: EM132776410

Problem 1: Which of the following statements is incorrect?

a. The grantor in a service concession arrangement is a public sector entity.

b. The grantor under a BOT contract acts as a service provider rather than a manufacturer.

c. The consideration in a BOT contract is a financial asset if the operator has a contractual right to receive cash or other financial asset from the grantor.

d. If the consideration in a BOT contract is partly a financial asset and partly an intangible asset, the two components are accounted for separately.

Problem 2: The operator under a BOT contract receives a backhoe from the grantor. Control over the backhoe is transferred to the operator. How should the operator account for the backhoe?

a. as a government grant

b. as part of the transaction price that will be recognized as revenue using PFRS 15

c. directly in equity

d. any of these, as a matter of accounting policy choice

Reference no: EM132776410

Questions Cloud

What is the breakeven point assuming the sales mix consists : What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product? Y? Total fixed costs $ 48 000.00
Why the ahca failed in the first attempt at passage : This week's discussion focuses on the federal government's role in protecting the public's health using the ACA and current efforts to "repeal and replace".
Web-based Machine Learning applications : Interpreting and evaluating Web based analytics platforms - recent advent of web-based analytics tools including applications in deep learning.
What is the magnitude of a point charge : 1) What is the magnitude of a point charge chosen so that the electric field intensity E has a magnitude of 3.30 N/C at a distance of 76cm. what do you mean by
How should the operator account for the backhoe : How should the operator account for the backhoe? The operator under a BOT contract receives a backhoe from the grantor. Control over the backhoe is transferred
Are the aircraft moving at a constant velocity : Hint: Are the aircraft moving at a constant velocity after the collision or do they experience an acceleration?
How elimination complexities can affect lives of patients : Discuss how elimination complexities can affect the lives of patients and their families. Discuss the nurse's role in supporting the patient's psychological.
Determine the angle of refraction and the wavelength : Determine the angle of refraction and the wavelength off the light in the quartz glass
Which government or other public sector body contracts : Maintain the grantor's infrastructure assets, such as roads, bridges, tunnels, airports, energy distribution networks, prisons or hospitals.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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