Company Law Case Question 1According to Lee Mei Pheng & Ivan Jeron Detta (2014), directors stand in fiduciary relationship with the company which is a relationship that is based on confidence and trust. So the director should always act for the best interest of the company. Fiduciary duties of a director as specified by Section.
Accounting for Extended Warranty ContractsExampleStereoContractTotalRevenue10001001100Cost90020920Profit10080180MethodsFull revenue recognition: Recognize full revenue and cost on the date of sale. Hence full profit of $180 will be recognized. If during the service term of 2 years, the service cost exceeds or falls short of $20, adjustment will be made on a later date.Deferred Revenue Recognition: Sale of stereo and sale.
