FAR 32 provides the policies and procedures for contract financing. Explain three primary means of contract financing and when the methods are applicable.
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FAR 32 provides the policies and procedures for contract financing. Explain three primary means of contract financing and when the methods are applicable.
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- The following certain attributes present into a contract to determine whether the arrangements with customer are contracts within the scope of IFRS 15:I. The parties have approved the contract and are committed to perform their respective obligations.II. Each party’s rights regarding the goods or services to be transferred can be identified.III. Payment terms can be identified.IV. The contract has commercial substance.V. It is probable that the entity will collect the consideration to which it will be entitled in exchange for goods or services that will be transferred to the customer. I only I, II, and IV only All of the above I, II, IV, and V onlyWhat is a multiple-element contract? Give an example of such a contract. How does NZ IFRS 15 apply to such transactions?Describe five basic elements of a contract based on Contract act 1950
- Explain the accounting for contract modifications.Access the FASB’s Codification Research System® at the FASB website (www.fasb.org) and select Basic View. Determine the specific seven-digit (XXX-XX-XX) or eight-digit Codification citation (XXX-XX-XX-X) for accounting for each of the following items: Definition of initial direct costs. When a modification to a contract is reported as a separate contract (that is, separate from the original contract). The disclosures required in the notes to the financial statements for a lessor. The classification criteria for when a lessee classifies a lease as a finance lease and a lessor classifies a lease as a sales-type lease.What are the two basic methods of accounting for longtermconstruction contracts? Indicate the circumstancesthat determine when one or the other of these methodsshould be used.