f2 Florida Construction Company (FCC) and Anak Que Limited (AQ) had the following information: Costs incurred Estimated costs to Progress bling during each year complete during the year Cash collected during the year 2014 104,167 866,667 562,500 479,167 2015 100,000 783,333 260,417 312,500 2016 160,417 706.333 354387 354,367 2017 64.583 530,000 2316.458 229.167 2018 81333 253,425 291,667 2019 665,104 205,000 312,891 276,042 2020 73.438 130,000 16LM 192,708 2021 103646 75,000 201,734 213,542 2022 49,479 O 149,870 151,042 Required 1. Discuss some of the challenges tut face accountants worldwide when conducting international transactions 3 Marks) 2. Assuming that the US GAAP is adopted, describe the methods of recognizing revenue when there is significant uncertainty in cash collectability for installment sales (whenever it is possible, support your answer with empirical illustration) 3. Answer the following questions with respect to FCC and AQL compan Marks) a) Do you agree with Mr. East's position that at the end of 2016, his company makes a higher profit from the project when compared to the profit that FCC makes from its project? Provide evidence to support your decision Marks) b) Do you agree with Mr. West's position that at the end of 2016, his company increased its total assets from the project when compared to the method wed by AQL (please focus only on Construction in progress, Billings on construction contracts and Accounts receivable? Provide evidence to support your decision (3 Marks) Assume that the percentage of completion method was available to AQL at the start of the project in 2014. Assume the company compares its current method with the percentage of completion method. Based on the results at the end of 2016 and 2021, which of the two methods provides: Lowest expenses Highest net income Highest total assets (please focus only on Construction in progress, Billings on construction contracts and Accounts receivables Marks) Note: When using the percentage of completion method, make sure you round to the fourth decimal place. For example, if you get the following salt 0.7512669, your answer should be 0.7513 or 75.13% f 2 Florida Construction Company (FCC) and Anfaak Qatar Limited (AQL) had the following information: Costs incurred during each year Estimated costs to complete Progress billing during the year Cash collected during the year 2014 104,167 866,667 562,500 479,167 2015 100,000 783,333 260,417 312,500 2016 160,417 708,333 354,167 354,167 2017 64,583 530,000 236,458 229,167 2018 83,333 348,333 253,125 291,667 2019 665,104 205,000 312,891 276,042 2020 73,438 130,000 161,849 192,708 2021 103,646 75,000 208,724 213,542 2022 49,479 0 149,870 151,042 Required: 1. Discuss some of the challenges that face accountants worldwide when conducting international transactions. (3 Marks) 2. Assuming that the US GAAP is adopted, describe the methods of recognizing revenue when there is significant uncertainty in cash collectability for installment sales (whenever it is possible, support your answer with empirical illustrations). 3. Answer the following questions with respect to FCC and AQL companies: (3 Marks) a) Do you agree with Mr. East's position that at the end of 2016, his company makes a higher profit from the project when compared to the profit that FCC makes from its project? Provide evidence to support your decision. (3 Marks) b) Do you agree with Mr. West's position that at the end of 2016, his company increased its total assets from the project when compared to the method used by AQL (please focus only on Construction in progress, Billings on construction contracts and Accounts receivable)? Provide evidence to support your decision. (3 Marks) c) Assume that the percentage of completion method was available to AQL at the start of the project in 2014. Assume the company compares its current method with the percentage of completion method. Based on the results at the end of 2016 and 2021, which of the two methods provides: Lowest expenses. Highest net income Highest total assets (please focus only on Construction in progress, Billings on construction contracts and Accounts receivable). (3 Marks) Note: When using the percentage of completion method, make sure you round to the fourth decimal place. For example, if you get the following result 0.7512869, your answer should be 0.7513 or 75.13%