Corporations need financial reporting Standards? Explain the two major standard Q1 Why do

Setters?

Q2. Accounting Information system takes in the whole process of accounting cycle. Explain each step in the accounting cycle with a numerical example of your own

Q3. A. What do you understand by allocation to non-controlling interest and discontinued operations? Explain how are they reported in the income statement.

B. Intraperiod Tax Allocation.

XYZ Co. has income before income tax of SR 50,000. It has a gain of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, how would XYZ Co. present the information on the income statement, and if it has a loss of SR 10,000 from a discontinued operation. Assuming a 35 percent income tax rate, show the changes in Income on the income statement

Q4.

Presented below are a number of statement of financial position items for ABC, Inc., for the current year, 2020.
Goodwill	SR 125,000	Accumulated Depreciation - Equipment	SR 292,000
Payroll Taxes Payable	177,591	Inventories	239,800
Bonds Payable	285,000	Rent Payable - Short-term	45,000
Cash	360,000	Taxes Payable	98,362
Land	480,000	Long-term Rental Obligations	480,000
Notes Receivable	445,700	Share Capital - Ordinary, $1 Par Value	200,000
Notes Payable to Banks	265,000	Share Capital - Preference, $10 Par Value	150,000
Accounts Payable	490,000	Prepaid Expenses	87,920
Retained Earnings	713,897	Equipment	1,470,000
Income Taxes Receivable	97,630	Trading Securities	121,000
Unsecured Notes Payable (Long-term)	1,600,000	Accumulated Depreciation - Building	270,200
		Building	1,640,000

Prepare a classified statement of financial position in good form as per IFRS.

Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of trading securities are the same