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Antoine,a bush pilot,agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter,and to retrieve them a month later.Three weeks into the bush,the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick.
-If Gamma Oil arranges on its own for another helicopter to pick up the crew,it runs the risk of having to pay both the new pilot,and Antoine,should Antoine have made some alternative provision to honour his obligation to extract the crew.
Liabilities
Financial obligations or debts owed by a company to others, which are expected to be paid or settled in the future.
Functional Currency
The currency of the primary economic environment in which an entity operates and carries out its day-to-day transactions.
Exchange Rate
The value of one currency for the purpose of conversion to another.
Historical Cost
The original monetary value of an asset or transaction, without adjustments for inflation or other factors.
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