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Pages:
4 pages/≈2200 words
Sources:
3 Sources
Level:
Harvard
Subject:
Accounting, Finance, SPSS
Type:
Other (Not Listed)
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 37.44
Topic:

INTERNATIONAL FINANCIAL REPORTING. Accounting, Finance, SPS (Other (Not Listed) Sample)

Instructions:

Question 1
(a)The definition of an asset and a liability
forms an important element of the Conceptual Framework for Financial Reporting 2010, which in turn, forms the basis of various accounting standards.
Required:
Define an asset and a liability and critically evaluate the circumstances under which they should
be recognised in the financial statements as required by the conceptual framework. Give a critical explanation of how the definition of assets and liabilities may enhance the reliability of financial statements
(b) On 1 January 2015 Rogers acq
uired a plan under the following terms:
Hours
£000
Manufacturer’s list price --1,200
Trade discount (applying to list price only)--20%
Freight charges --26
In-transit insurance--4
Staff training in use of machine --40
Electrical installation cost --17
Site preparation --34
Pre-production testing--33
Purchase of a three -year maintenance contract--15
Estimated residual value--100
Estimated life in machine hours--5,000
Hours used:
Years ended 31 December 2015--1500
Years ended 31 December 2016--1900
Required:
Prepare extracts from the statements of comprehensive income and
statement of financial position for the plant for each of the two years to 31 December 2016 .
Question 2
-
IAS 17 Leases
(i)
By using the regulatory discussions and relevant international accounting standards (IASs) which are taught in the module APC311, you are required to provide a critical evaluation of IAS 17 Leases.
(ii)
Pamela Ltd entered a five-year lease on 1 January 2010 for a machine
with a fair value of £20,000. Rentals are £5,200 per annum payable in advance. The residual value of the machine at the end of the lease is estimated to be £4,200. Pamela Ltd will be reimbursed with this £4,200 on returning the machine to the lessor in reasonable condition. Peter Ltd is responsible for insurance and maintenance costs. The rate of interest implicit in the lease is 15.15%
Required:
Calculate the annual finance charges on a sum of the digits basis and on an actuarial basis. Comment on the results--

source..
Content:


INTERNATIONAL FINANCIAL REPORTING
Name
Course
Professor
Institution
Date
INTERNATIONAL FINANCIAL REPORTING
Introduction
International financial reporting is an accounting principle used under the International financial reporting standards (IFRs) forms part of the generally accepted accounting principles which are widely used by companies in preparing financial statements (Leuz, and Wysocki, 2016, 525). They are published annually because they are a great source of information used by stakeholders in understanding how the company is performing in terms of resources. The financial reporting thus has a framework which assists the board in revising IFRs basing on the consistent concepts so that the company will have developed accounting policies in new areas. The framework addresses the purpose of financial reporting, qualitative characteristics of important financial information, reporting entity, elements of financial statements and measurement (Leuz, and Wysocki, 2016, 525). It also addresses presentation and disclosure and capital and how to maintain the capital.

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