MC Question 5
Tynan’s year end is 30 September 2014 and the following potential liabilities have been identified:
| (i) | The signing of a non-cancellable contract in September 2014 to supply goods in the following year on which, due to a pricing error, a loss will be made |
|---|---|
| (ii) | The cost of a reorganisation which was approved by the board in August 2014 but has not yet been implemented, communicated to interested parties or announced publicly |
| (iii) | An amount of deferred tax relating to the gain on the revaluation of a property during the current year. Tynan has no intention of selling the property in the foreseeable future |
| (iv) | The balance on the warranty provision which relates to products for which there are no outstanding claims and whose warranties had expired by 30 September 2014 |
Which of the above should Tynan recognise as liabilities as at 30 September 2014?
A All four
B (i) and (ii) only
C (i) and (iii) only
D (iii) and (iv) only