Sbr (int/UK) Strategic Business Reporting

financial asset at a specified time other than liquidation, or 

• 

An unavoidable contractual obligation for an amount independent of 

the entity’s available economic resources’ (DP/2018/1: IN10). 

 

(2 marks if complete, 1 mark if partial) 

 

Medsupply is obliged to transfer $24 million cash in four years’ time so it does 

have an unavoidable contractual obligation to transfer cash at a specified time 

other than liquidation. 

(1 mark) 

The amount that Medsupply must transfer is $24 million. This does not change, 

irrespective of Medsupply’s liquid assets. As such, the amount is independent 

of Medsupply’s available resources. 

(1 mark) 

Under the Board’s proposals, the preference shares would still be classified as 

a financial liability.