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CalculationAdvancedPublished

Question · Coverage units and the release of the margin

The group of contracts of Aurore SA has a contractual service margin of 9,000 before release. Management uses the number of contracts covered as the coverage unit (management's judgement: a choice not imposed by the standard). The group provided 150 units coverage units in the period and will provide 600 units in the future (case data). Calculate the amount released to profit or loss for the period and the closing margin.

Margin before release
9,000
Coverage units provided in the period
150
Coverage units expected in the future
600
Your answer

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