Financial Reporting Question

A Undeniably profitability is the ultimate goal of companies and readers of a company's financial statements are very much interested in the reported prodit figure. The profit figure is achieved by the preparation of the statement of profit or loss and the statement of financial position. If the foregoing is the caw, why then bother about the statement of cash flows (5 marks) B. Globally, accounting standards are developed based on different methods. It is generally agreed that the nature of accounting standards depends on the systems of regulation. It has been argued that there are two main systems of relation Required: Identify and explain the difference between the two system of regulation, stating clearly which system you believe describes the Interational Financial Reporting Standards (IFRS) Con January 2018, Global Drilling Lad entered into a GHS23million contract for the construction of an office complex at Tema. The building was completed the end of December 2018. During the period, the following payments were made to the contracte Payment date GHS January 2018 31 March 2018 30 September 2018 12.00 31 December 2018 Global Drilling's borrowings as at its year end of 31 December 2013 were as follows 10% 4-year Loan Note with simple interest payable ansally, which relates specifically to the building project, loans outstanding at 31 December 2018 amounted to GHS7,000,000. Interest of GHS700,000 was incurred on these bomowing during the year, and interest income of GHS200,000 was cared on these funds while they were heldinion of payments. 12.5%. Five-year Loan Note with simple interest payable annually, delt outstanding at 1 January 2018 amounted to GHS10,000,000 and remained unchanged during the year. 10% Five-year Loan Note with simple interese payable annually debt cutstanding at I" January 2018 mounted to GHISIS.000.000 and remained unchanged during the you Required: Calculate the borowing costs to be capitalised (5 marks) D. Miss Nsiah is a qualified chartered accountant who prepares financial statements for a fimm located at Tesano Miss Nissh does not qualify for a practicing comificate and so she does not provide andit service to the client This is her first year of preparing financial statements for the fim. When compiling the most recent accounts, she detected some material croes in the previous financial statements. It seemed that the accounts were based on incomplete reconds ascertain costs were excluded, either deliberately or because reconds were not maintained The Chief Executive Officer of the firm has some additional work to be completed on a complex tax issue. However, she has no prior experience and does not feel competent to the work. The CEO would also like her to provide an audiences they are planning to apply for funding from a bank and the bank would like some further assurance Required: With reference to Code of Ethics for accountants discuss the ethical principles applicable to the above scenari (5 marks) (Total 20 marks)