Difference between revisions of "Decision Tree Example 1 Answer (CIA.IFRS17-LRC)"

From Exam 6 Canada
Jump to navigation Jump to search
Line 1: Line 1:
[https://www.battleactsmain.ca/video/animations/countdown.mp4 <span style="color: green; background-color: navajowhite; border-radius: 24px; padding: 5px 10px 10px 10px ; font-size: 24px">'''&#8721;'''</span>]
 
 
 
{| class='wikitable'
 
{| class='wikitable'
 
|-
 
|-
Line 15: Line 13:
 
* Based on the decision tree, a qualitative assessment of facts & circumstances indicates that this group of contracts is <u>non-onerous</u>.
 
* Based on the decision tree, a qualitative assessment of facts & circumstances indicates that this group of contracts is <u>non-onerous</u>.
 
* No further action is required.
 
* No further action is required.
 +
 +
[https://www.battleactsmain.ca/video/animations/countdown.mp4 <span style="color: green; background-color: navajowhite; border-radius: 24px; padding: 5px 10px 10px 10px ; font-size: 24px">'''&#8721;'''</span>]

Revision as of 19:11, 31 May 2022

Example 1: Given the following information about a group of contracts, asses whether the group is onerous and take appropriate action (if any)
  • company has been stable and profitable for the past 10 years
  • no unfavourable trends are projected
  • FCF = 100
  • LRC ex. LC = 105
  • LC = 0

Answer:

  • Based on the decision tree, a qualitative assessment of facts & circumstances indicates that this group of contracts is non-onerous.
  • No further action is required.