Menu
support@graduatecourseshelp.com
+1(805) 568 7317

illustrate the effects of the events after the reporting period ias 10 3 described a 612616

1. Entity A was sued in 01. On Dec 31, 01, it is not clear whether the probability of conviction in the ongoing trial is more than 50%. Shortly after Dec 31, 01, A is convicted.

2. Entity B holds a receivable which is measured at amortized cost according to IFRS 9. Shortly after the reporting period, the debtor files for bankruptcy.

3. In 01 and 02, Entity C carries out a construction contract. By Dec 31, 01, contract costs of CU 12 have been incurred. Total contract revenue is CU 30. The stage of completion is calculated according to the cost-to-cost method (IAS 11.30a). In Jan 02, the estimate of total contract costs is revised from CU 20 to CU 24. The reason for this revision is an increase in prices at commodity exchanges in Jan 02.

4. In Jan 02, part of the manufacturing facilities and inventories of entity D is destroyed by a flood. The damages are not covered by insurance. However, D”s management expects that it will be possible to continue the business activities.

5. In Jan 02, the entire manufacturing facilities and inventories of entity E are destroyed by a flood. Because the damages are not covered by insurance, there is no realistic alternative for E but to cease its business activities.

Required

Illustrate the effects of the events after the reporting period (IAS 10.3) described above on the recognition and measurement in the financial statements of entities A–E as at Dec 31, 01.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now