1. The company used the LIFO method for inventory valuation. However, IFRS only permits the use of FIFO method. The inventory valuations for the current and previous period are as follows under the two methods Current Period Previous Period FIFO $650,000 $740,000 UFO $880,000 $950,000 2. During the current financial year, the company has expensed $220,000 of new product development cost paid and recognised it in the Statement of Profit or loss. However, the project is technically feasible and therefore quality to be capitalised under IFRS. It needs to be recognised as an asset in the Balance Sheet (Statement of Financial Position). 3. Interest received of $120,000 and dividend received of $50,000 have been classified as cash flows from financing activities in the current years cash flow statement Traditionally, interest received and dividend received were classified as cash flows from operating activities and the company does not have any significant reason for a policy change. 4. The directors of the company have recommended that a dividend of $250,000 be paid in respect of the 2019/2020 financial year. The dividend is required to be approved by the company's shareholders. As of the reporting date the shareholders had not met to approve this dividend, but the directors have recorded 5250,000 as dividends to be paid anyway, 5. The CFO is conservative in its accounting values and decided to make a provision of $500,000 for any tuture major repairs that may be undertaken to its manufacturing plant. However, at 30 June 2020 there was no contractual obligation to incur any expenditure due to major repairs expected to be undertaken in tuture years. Hence this provision for future repairs cannote recognised in the financial statements in accordance with IFRS e to search 1. The company used the LIFO method for inventory valuation. However, IFRS only permits the use of FIFO method. The inventory valuations for the current and previous period are as follows under the two methods Current Period Previous Period FIFO $650,000 $740,000 UFO $880,000 $950,000 2. During the current financial year, the company has expensed $220,000 of new product development cost paid and recognised it in the Statement of Profit or loss. However, the project is technically feasible and therefore quality to be capitalised under IFRS. It needs to be recognised as an asset in the Balance Sheet (Statement of Financial Position). 3. Interest received of $120,000 and dividend received of $50,000 have been classified as cash flows from financing activities in the current years cash flow statement Traditionally, interest received and dividend received were classified as cash flows from operating activities and the company does not have any significant reason for a policy change. 4. The directors of the company have recommended that a dividend of $250,000 be paid in respect of the 2019/2020 financial year. The dividend is required to be approved by the company's shareholders. As of the reporting date the shareholders had not met to approve this dividend, but the directors have recorded 5250,000 as dividends to be paid anyway, 5. The CFO is conservative in its accounting values and decided to make a provision of $500,000 for any tuture major repairs that may be undertaken to its manufacturing plant. However, at 30 June 2020 there was no contractual obligation to incur any expenditure due to major repairs expected to be undertaken in tuture years. Hence this provision for future repairs cannote recognised in the financial statements in accordance with IFRS e to search