Recent orders

000 which would profit the company by £ 150

000 but eventually SEI could only able to sell 30% of the stock merchandise amounting to £ 225

costs

overheads and profitability during 2008 relative to 2007

BEP should book it as unearned revenue or as an advance from the customer in its current liabilities because unless or until the sale has to be made to this customer sometime in future when the merchandises have been despatched and all the risks and rewards have been transferred to the buyer in accordance with IAS 18 – Revenues.