问题详情

Carpart,apubliclimitedcompany,isavehiclepartmanufacturer,andsellsvehiclespurchasedfromthemanufacturer.
Carparthasenteredintosupplyarrangementsforthesupplyofcarseatstotwolocalcompanies,VehiclexandAutoseat.
(i)Vehiclex
ThiscontractwilllastforfiveyearsandCarpartwillmanufactureseatstoacertainspecificationwhichwillrequiretheconstructionofmachineryforthepurpose.Thepriceofeachcarseathasbeenagreedsothatitincludesanamounttocoverthecostofconstructingthemachinerybutthereisnocommitmenttoaminimumorderofseatstoguaranteetherecoveryofthecostsofconstructingthemachinery.Carpartretainstheownershipofthemachineryandwishestorecognisepartoftherevenuefromthecontractinitscurrentfinancialstatementstocoverthecostofthemachinerywhichwillbeconstructedoverthenextyear.(4marks)
(ii)Autoseat
AutoseatispurchasingcarseatsfromCarpart.ThecontractistolastforthreeyearsandCarpartistodesign,developandmanufacturethecarseats.Carpartwillconstructmachineryforthispurposebutthemachineryissospecificthatitcannotbeusedonothercontracts.Carpartmaintainsthemachinerybuttheknow-howhasbeengrantedroyaltyfreetoAutoseat.Thepriceofeachcarseatincludesafixedpricetocoverthecostofthemachinery.IfAutoseatdecidesnottopurchaseaminimumnumberofseatstocoverthecostofthemachinery,thenAutoseathastorepayCarpartforthecostofthemachineryincludinganyinterestincurred.
AutoseatcanpurchasethemachineryatanytimeinordertosafeguardagainstthecessationofproductionbyCarpart.ThepurchasepricewouldbethecostofthemachinerynotyetrecoveredbyCarpart.ThemachineryhasalifeofthreeyearsandtheseatsareonlysoldtoAutoseatwhosetsthelevelsofproductionforaperiod.
Autoseatcanperform.apre-deliveryinspectiononeachseatandcanrejectdefectiveseats.(9marks)
(iii)Vehiclesales
Carpartsellsvehiclesonacontractfortheirmarketprice(approximately$20,000each)atamark-upof25%
oncost.Theexpectedlifeofeachvehicleisfiveyears.Afterfouryears,thecarisrepurchasedbyCarpartat20%ofitsoriginalsellingprice.Thispriceisexpectedtobesignificantlylessthanitsfairvalue.ThecarmustbemaintainedandservicedbythecustomerinaccordancewithcertainguidelinesandmustbeingoodconditionifCarpartistorepurchasethevehicle.
Thesamevehiclesarealsosoldwithanoptionthatcanbeexercisedbythebuyertwoyearsaftersale.Underthisoption,thecustomerhastherighttoaskCarparttorepurchasethevehiclefor70%ofitsoriginalpurchaseprice.Itisthoughtthatthebuyerswillexercisetheoption.Attheendoftwoyears,thefairvalueofthevehicleisexpectedtobe55%oftheoriginalpurchaseprice.Iftheoptionisnotexercised,thenthebuyerkeepsthevehicle.
Carpartalsousessomeofitsvehiclesfordemonstrationpurposes.Thesevehiclesarenormallyusedforthis
purposeforaneighteen-monthperiod.Afterthisperiod,thevehiclesaresoldatareducedpricebasedupontheirconditionandmileage.(10marks)
Professionalmarkswillbeawardedinquestion3forclarityandqualityofdiscussion.(2marks)
Required:
DiscusshowtheabovetransactionswouldbeaccountedforunderInternationalFinancialReportingStandardsinthefinancialstatementsofCarpart.
Note.Themarkallocationisshownagainsteachofthearrangementsabove.
请帮忙给出正确答案和分析，谢谢！