Telecoms operator Nordis Télécom wins a 4-year connectivity contract with a hotel chain for total consideration of 850,000. An independent business introducer receives 3 % of that consideration, payable only because the contract is concluded. Nordis also paid 6,000 to a consultant to prepare its bid, due whatever the outcome, and the fixed salary of its sales manager for the negotiation month amounts to 4,200. Recovery of the costs is expected. What amount does Nordis recognise as an asset?
- Total contract consideration
- 850,000
- Introducer's fee
- 3 %
- Consultant's fees for the bid
- 6,000
- Sales manager's fixed salary
- 4,200