What is mean by “annual consideration” in accounting terms?
Question : What is mean by “annual consideration” in accounting terms?
Just a basic accounting question I encountered while studying financial statements in Accounting. This is what the statement read:
The partner shall service and maintain the CDMA system
that it constructs pursuant to a Service Level Agreement (SLA) dated the same date as the Master of Procurement Partnership Agreement (MPPA) in return for the annual consideration of US$ 5.3 million.
Does the US$ 5.3 million figure refer to the SLA or the MPPA?
service level agreement
Best answer:
Answer by Rachel
I believe it means that they will pay 5.3m every year of the SLA
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