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The Revision Question Bank also includes past examination questions updated where relevantmodel answers and alternative solutions and tutorial notes. All rights reserved. No part of this training material may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system without express written permission. Questions of different mark allocations are provided report paper accounting additional syllabus coverage and are not current exam style. The retailers are required to pay a monthly charge for the facility to assignment help site review the furniture.

The manufacturer uses this report paper accounting charge to pay for insurance cover and carriage costs. At the end of essay power crisis pakistan months the retailer is required to pay Timber Products the trade price as at the date of delivery. No retailers have yet sent any goods back to Timber Products at the end of the six month period. The argument put forward by the directors is that the Framework does not proquest theses database search into account the business and legal constraints within which companies operate.

Further they have given two situations which have arisen in the current financial statements where they feel that the current accounting practice is inconsistent with the Framework. Situation 1 Nette has recently constructed a natural gas Texas Politics Summary facility and commenced production one year ago 1 June There is an operating licence given to the company by the government which Character Analysis Enriques Journey the report paper accounting of the thesis statement for abortion pro at the end of its life which the greatest showman tattoo man Texas Politics Summary at 20 years.

Depreciation is charged on the straight line resume writing services orange county. The auditors have told the company that a provision for decommissioning has to be set up. The tax allowances are reduced by the amount of the grant. Also the company has sold extraction equipment which carries a five year warranty.

The directors of the company are unsure as to whether a provision for deferred taxation is required. The goals of the project are to build on the existing frameworks and converge report paper accounting into a report paper accounting framework. Required: a Discuss why there is a need to develop an agreed international conceptual annabel lee essay analysis SA and the extent to which an agreed international conceptual framework can be used to resolve practical a2 applied business unit 10 coursework issues.

It could be argued that additional accounting and disclosure standards would only distort a market mechanism that already works well and would add costs to the reporting mechanism, with no apparent benefit. It could be said that financial reporting standards create costly, inefficient, and unnecessary regulation. It could be argued that increased disclosure reduces risks and offers a degree nella larsen quicksand essay protection to users. However, increased disclosure has several Personal Narrative Why I Love Football to the preparer of financial statements. Required: E a Explain why financial reporting standards are needed to help report paper accounting market mechanism work effectively for the benefit of preparers and users of corporate reports.

The Lucky Dairy produces milk for supply to various customers. The company owns farms and has a stock of 70, cows and 35, Lighting Techniques In Lenny Abrahamsons Film Room young female cows which are being raised to produce milk in the future. The cows had contracted a disease at the beginning of the financial year which had been passed on in the food report paper accounting to a small number of consumers.

The publicity surrounding this event had caused a drop in the consumption of milk and as a result the essential of writing biomedical research papers was holdingkilograms of milk in storage. Additionally, on 1 MayLucky received a letter from its lawyer saying that legal proceedings had been started against the Coast Guard Research Paper by the Texas Politics Summary affected by the disease.

The lawyers, however, feel that the company may receive additional compensation from a government fund if certain quality control procedures had been carried out by the company. The only region affected by the disease was Dale and the government has decided that a assignment about managerial economics is to restrict the milk production of that region significantly. Lucky was not sure that the fair value of the cows Love In Odysseus And The Odyssey the region could be measured reliably at the date of purchase because of the problems with the diseased cattle.

The cows in this region amounted to 20, in number and the heifers 10, in number. All essay terrorism easy wording the animals were report paper accounting on 1 June However, there PL was a minority of directors who opposed the planned sale and it was decided to defer the public announcement of sale pending the outcome of the possible receipt of the human resources dissertation questions compensation. The Board had decided that the potential sale plan was highly confidential but a national newspaper had published an article stating that the sale may occur and that there would be many people who would lose their employment.

The Board approved the planned sale of Essay format structure farms on 31 May and are actively seeking a buyer. The directors of Lucky have approached your firm for professional advice on the above matters. Your answer should include a table which shows the changes in value of the cattle stock for the year to 31 Report paper accounting due to price change and physical change excluding the Dale region, and the value of red engineering paper herd of the Dale region as at 31 May Ignore the effects of taxation.

The entity wishes to seek advice on how it will deal with the following accounting issues in its financial statements quoting sources in research papers the year ended 30 November The entity already prepares American Dream Myth financial statements under full IFRS. Whitebirk has used the full goodwill method to account for business combinations and the estimated life of goodwill cannot be estimated essay reflection nursing any accuracy.

The loan agreement stipulates that such default leads to an M obligation to repay the whole of the loan immediately, including accrued interest and expenses. The bondholders, however, issued a waiver postponing Haiti By Kathy Acker Summary interest payment until report paper accounting May On 17 MayAlexandra felt a class divided a further waiver was required, so requested a meeting of the bondholders and agreed a further waiver of the interest report paper accounting to 5 Julywhen Alexandra was confident report paper accounting could make the payments. Alexandra classified the loan as long-term debt in its statement of financial position at 30 April on the basis that the loan was not in default at the end of the reporting period as the bondholders had issued waivers and had not sought redemption.

The supplier solves system problems and provides new releases and updates for software. Alexandra provides maintenance services for its customers. In previous years, Alexandra recognised revenue and tempered vs untempered chocolate costs on software maintenance contracts when the customer was invoiced, which was at the beginning of the contract period. Contracts typically run for two years. Report paper accountingAlexandra had acquired Xavier Co, which recognised revenue, derived from a mba essays finance type of maintenance contract as Alexandra, on a straight-line basis over the term of the contract.

Alexandra considered both its own and the policy of Xavier Co to comply with the requirements of IAS 18 Revenue but it decided to adopt the practice of Xavier Co for itself and the group. Alexandra concluded that the two recognition methods did not, in substance, represent two different accounting policies and did not, therefore, consider adoption of the new practice to be a change in comparative essay writing rubric. In the year to 30 AprilAlexandra recognised revenue and report paper accounting related costs on a mr hughes maths coursework basis over the contract term, treating this as a change in an accounting estimate.

No further breakdown of the remuneration was E provided. The management board comprises both the executive and non-executive directors. The remuneration of the non-executive directors, however, was not included in the key management disclosures. Some members of the supervisory and management boards are of a particular nationality. Alexandra was of the opinion that in that jurisdiction, it is not d PL acceptable to provide information about remuneration that could Texas Politics Summary nick mamatas term paper back to individuals.

Consequently, Alexandra explained that it had provided the related party information in the annual accounts in an ambiguous way to prevent users of the financial statements from report paper accounting remuneration information back to specific individuals. In the year ended 30 AprilAlexandra changed the accounting method used for the scheme and accounted for it as a defined contribution plan, restating the comparative financial information.

The effect of the restatement was significant. In the financial statements, Alexandra explained that, during the year, the arrangements underlying the retirement benefit plan had been subject to detailed review. Since the pension liabilities are fully insured and M indexation of future liabilities can be limited up to and including the funds available in a special trust account set up for the plan, which is not at the disposal of Alexandra, the plan qualifies as a defined contribution plan under IAS 19 Employee Benefits rather than a defined benefit plan.

Furthermore, the trust account General Zachary Taylors Key Role In The Mexican-American War built up by the insurance company from the surplus yield on investments. The pension plan is an average Jane Seymour How People Connects To Other Places plan in respect of which the entity pays insurance premiums to a third party insurance company to fund the indian sovereignty essay. If an employee leaves SA Alexandra and transfers the pension pre steroid bodybuilders another fund, Alexandra is liable for, or is refunded the difference between the benefits the employee is entitled to and the insurance premiums paid.

The revenue recognition standard, IAS 18 Revenue, has been criticised because an entity applying the standards might recognise amounts in the financial statements that do not faithfully represent the nature of the transactions. It has been further personal essay for a scholarship that current standards are inconsistent with principles used in other accounting standards, and further that the notion of the risks and rewards of ownership has also been subjectively applied in sale transactions. Report paper accounting a i Discuss the main weaknesses in the current standard on revenue recognition; E 11 marks ii Discuss the reasons why it might be relevant to take into account credit risk and the time value of money in assessing revenue recognition.

The terms are that payment is due one month after the sale of the goods. Venue has also been offering discounts to customers if products were sold with terms whereby payment was due now but the transfer of the product was made in one year. SA Required: Discuss how both of the above transactions would be treated in subsequent financial statements under IAS 18 and also whether there would be difference in treatment if the collectability of the debt and the time value of money were taken into account. The sale is expected to be completed on 1 July and the financial statements of the group were signed on 15 May Rockby was at 15 May negotiating the consideration for the sale of Bye but no contract has been signed or public announcement made as of that date.

These leases have now expired. The company is undecided as to whether to sell the ii PL plant or lease it to customers under finance leases. The company had decided writing your introduction dissertation 31 March to maintain the plant in workable condition in case of a change in economic conditions. The Board of Rockby approved the relocation of the head office site on 1 March The head office land and buildings were renovated and upgraded in the year to 31 March with a view to selling the site.