Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Using Your Judgment - Financial Statement Analysis Case - Page 72: a

a.Total expected income from the layaway sales (in year one) will not be recognized in the year of the changes. The income will be recognized two years after the effect of the change. Accordingly, the income from the layaway sales will be carried forward to subsequent years until such a year that they are fully settled.

a.Total expected income from the layaway sales (in year one) will not be recognized in the year of the changes. The income will be recognized two years after the effect of the change. Accordingly, the income from the layaway sales will be carried forward to subsequent years until such a year that they are fully settled.