Mistake in Practice Exam Q24b? CSM release
According to the exam question, the release of CSM is calculated as
CU(beg) / ( CU(beg) + CU(end))
This contradicts the IFRS16-LRC page, where the CSM is calculated as
CU(quarter) / ( CU(quarter) + CU (end)).
This formula also lines up with the exhibits in the source text, as well as the other battle acts practice questions on the release of CSM
I believe the given information in the question should be "coverage units used/provided in quarter = 450".
Comments
It says CU in the reporting period in column (1) though - This seems right to me
Sorry, perhaps my question wasn't clear. I'm talking about a potential mistake in the writing of BA Practice exam, question 24b. It uses the CU's at the beginning of the period, and not the CU's used during the period.
Oh yes you are right -> It should be coverage units in the beginning of the period @graham