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Journal entryIntermediateVariant — group VG.IAS37.000015Published

Question · Onerous contracts and cost of fulfilling a contract

Pralune signed a fixed-price supply contract that has become onerous; no specific asset is used to fulfil it. The excess of the unavoidable costs over the expected benefits is 48,000. Record the entry at the reporting date.

Excess of unavoidable costs over expected benefits
48,000
Your answer
  1. Line 1

    Account Onerous contract expense

  2. Line 2

    Account Onerous contract provision

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