On 1 July 2006, entity A contracted for the construction of a building for £2m on land that it had previously purchased. The building was completed at the end of June 2007, and during the period the following payments were made to the contractor: Entity A's borrowings as at 30 June 2007 (year end) were as follows: a) 10% four-year note with simple interest payable annually, which relates specifically to the project; debt outstanding at 30 June 2007 amounted to £700,000.
展开▼
