The bonus plan of Joran SA provides for a bonus equal to 4 % of profit after bonus. The profit for the year before bonus is 5,200,000. The constructive obligation is established and the amount can be estimated reliably (case facts). Calculate the profit after bonus, then the bonus to recognise at the reporting date.
- Profit for the year before bonus
- 5,200,000
- Bonus percentage (plan formula), applied to profit after bonus
- 4 %