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20:42 E t ' ' if? 31. Topic 4 guide 2020 s... Copy_~503163131 - Readonly e DIE'JO'S Read Only You can't save changes to this

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20:42 E t ' ' if? 31. Topic 4 guide 2020 s... Copy_~503163131 - Readonly e DIE'JO'S Read Only You can't save changes to this file. v TOPIC GUIDE CASE 2: The Boar Plan In 20x1 Antiques Galore Ltd went on-line. This was a relatively small venture and involved nothing more than launching a website, which it used to provide the location and contact details of Antique Galore stores. After a few years of declining prots, management went on a retreat in the Barossa Valley and developed a new strategic plan to become the biggest on- line antique retailer (the BOAR Plan). After considerable research in how to become an on-line retailer Antiques Galore Ltd decided to develop its website to serve the following functions for years to come: 0 Publish electronic catalogues of items for sale . Advertise special promotions . Enable customers to place orders 0 Enable customers to make credit card payments for goods ordered . Enable customers to purchase and use gift card vouchers . Enable customers to register to receive an electronic newsletter about antiques1 0 Host an intranet to enable retail staff to access information about stock levels in other Antiques Galore shops. Exhibit A (next page) lists key events pertaining to the development of the website. In the early stages of implementing the BOAR Plan, the chief financial officer (CFO) of Antiques Galore Ltd noticed that the company's accounting manual did not mention website costs. He decided to open a general ledger account called \"website costs\" to accumulate to record all costs associated with the emerging website and, thus, put off making any decision about how to account for them until now, when it is time to prepare the nancial statements of Antiques Galore Ltd for the year ended 31 December 20x4. During December 20x4 and January 20X5 Antiques Galore Ltd engaged in a University accounting internship programme. The intern (student doing work integrated learning) was given the project of reconciling the Website Costs account, which by that time had accumulated over $400,000 in costs. The summary is provided in Exhibit B, which appears on the next page. Ill 0

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