Question: Executory contracts are contracts where both sides have not yet performed their obligations. If your company has a long-term contract for the supply of raw

Executory contracts are contracts where both sides have not yet performed their obligations. If your company has a long-term contract for the supply of raw materials to XYZ Ltd for 50,000 tons per year for five years at a selling price of €10,000 per ton and the market price has fallen to €8,000 per ton, should this be recorded as a €2,000 a ton revenue in the current period? Justify your answer.

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