This is what you call great analysis, page-80

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bernsta

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26/02/18

12:54

Post #: 31345615
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Originally posted by cosrob ↑

I toyed around whether it should recognised as a libility or an asset and came to the conlusion that it's an assets.

When looking at the definition of a liability set out by IFRS, the key words are "expected to result in an outflow from the enterprise of resources", now Big has stated they have never had to repay this money and still have a sufficient amount of client to fill any gaps. Hence do they do not expect to have an outflow.

Where an asset is defined by roughly the same words but outflow is replaced with inflow, and you can see that it is an asset. What does put them in some hot water is that the recognition rules have changed with the following having been added "when ‘control’ over the good or service transfers to a customer". Now i don't know the terms on the contract with finstro, but they could have very easily worded it to get around this part.

For disclosure, im an accountant.

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Would love to see your accounting entry on that one, converting the liability to an asset?

BIG Price at posting: $2.22 Sentiment: None Disclosure: Not Held
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This is what you call great analysis, page-80

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