Financial reporting IAS 33 question

uestion 1 A customer made a claim for $100 000 for losses suffered by the late delivery of goods The main part (S80 000) of the claim was referred to goods due to be delivered before the year end. Explain how this would be dealt with under IAS 10. (5 marks) (a) (b) Management shall not prepare the bank's financial statements on a going concern basis if it determines after the balance sheet date to liquidate the bank or to cease doing business Should management adjust the bank's financial statements because the shareholders decided after the balance sheet date to cease the bank's core operations? Explain. (5 marks) Alcor Windows and Doors (Alcor) is a small company specializing in fire proof and bullet proof windows and doors. The company was just purchased and the new owner was amazed to learn that there was no retirement plan for the workers. The new owner would like to provide adequate retirement benefits for workers and reward long-time service. The workforce consists of twenty skilled artisans, each of whom is over age 50 and has been with the company for twenty years; two sales agents ages 40 and 55; three packing and delivery workers ages 35, 27 and 38; and a bookkeeper age 5 this situation, should the company adopt a defined benefit or a defined contribution plan? Explain your answer. (10 marks) (c) 4. Based on (d)An entity operates a coal mine. Its licensing agreement requires it to remove the machinery used for mining coal at the end of production and restore the land. 80% of the restoration costs relate to the removal of the machinery and 20% arise through mining the coal. The damage caused by mining the coal is assumed to be incurred in proportion to the volume of coal mined. At the balance sheet date the machinery has been built but no coal has been mined. According to IAS 37, when does a past event give rise to a present obligation? Explain using the situation above. (5 marks) (e) A provision should be recognised if the conditions set out below are met i an entity has a present obligation (legal or constructive) as a result of a past event; ii)it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and iii)a reliable estimate can be made of the amount of the obligation Should management recognise a provision for extended warranties that are underwritten by a third party? Explain. (5 marks) uestion 1 A customer made a claim for $100 000 for losses suffered by the late delivery of goods The main part (S80 000) of the claim was referred to goods due to be delivered before the year end. Explain how this would be dealt with under IAS 10. (5 marks) (a) (b) Management shall not prepare the bank's financial statements on a going concern basis if it determines after the balance sheet date to liquidate the bank or to cease doing business Should management adjust the bank's financial statements because the shareholders decided after the balance sheet date to cease the bank's core operations? Explain. (5 marks) Alcor Windows and Doors (Alcor) is a small company specializing in fire proof and bullet proof windows and doors. The company was just purchased and the new owner was amazed to learn that there was no retirement plan for the workers. The new owner would like to provide adequate retirement benefits for workers and reward long-time service. The workforce consists of twenty skilled artisans, each of whom is over age 50 and has been with the company for twenty years; two sales agents ages 40 and 55; three packing and delivery workers ages 35, 27 and 38; and a bookkeeper age 5 this situation, should the company adopt a defined benefit or a defined contribution plan? Explain your answer. (10 marks) (c) 4. Based on (d)An entity operates a coal mine. Its licensing agreement requires it to remove the machinery used for mining coal at the end of production and restore the land. 80% of the restoration costs relate to the removal of the machinery and 20% arise through mining the coal. The damage caused by mining the coal is assumed to be incurred in proportion to the volume of coal mined. At the balance sheet date the machinery has been built but no coal has been mined. According to IAS 37, when does a past event give rise to a present obligation? Explain using the situation above. (5 marks) (e) A provision should be recognised if the conditions set out below are met i an entity has a present obligation (legal or constructive) as a result of a past event; ii)it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and iii)a reliable estimate can be made of the amount of the obligation Should management recognise a provision for extended warranties that are underwritten by a third party? Explain