Germany Accrual Basis exercise


Joined
Dec 15, 2022
Messages
1
Reaction score
0
Country
Germany
Hi,
can someone help me with this excercise.
It has do be done based with the Revenue Recognition( Accrual basis of accounting)

On Dec. 22nd, 2018 a client enters a supermarket for electronic equipment and orders a flat screen television at a price of € 3.000. The television is delivered at the client’s home on Dec. 23rd, 2018. For some reason the bill is sent to the client on Jan 2nd, but arrives only on Jan. 8th, 2019 at the clients home. He pays the bill on February 1st, 2019. The purchase price of the flat screen for the supermarket was € 2.000.

• How is this transaction reflected in the supermarket’s financial statements in 2018 and 2019?
• When does the supermarket realize a profit?
 
Ad

Advertisements

Joined
May 27, 2022
Messages
48
Reaction score
4
Country
United States
Since you're in Germany, you are using IFRS GAAP to answer this question, correct?

What is the IFRS GAAP rule for recognizing revenues? Should be a five-step process, if it's anything like US GAAP.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

accrual basis 0
Accrual Basis 1
cash basis and accrual basis 2
Accrual/cash basis 3
Option Exercise - Cost Basis 10
cash basis or accrual 4
Accrual or cash basis 6
Cash Basis vs Accrual 1

Top