Question
Fourth question: (20 marks) On February 18, 2020, the financial statements of Al-Mutahidoon Al Arab Company for the year ending on December 31, 2019 were
Fourth question: (20 marks)
On February 18, 2020, the financial statements of Al-Mutahidoon Al Arab Company for the year ending on December 31, 2019 were completed.
_ On March 8, 2020, the financial statements were approved by the Board of Directors for issuance.
_ On 4/2/2020, the general assembly approved, at its annual meeting, the financial statements.
The following are some of the events that occurred after December 31, 2019:
1- On 15/1/2020, one of the companys clients went bankrupt, and the amount of the debt owed by him amounted to 40,000 dinars, and the company had a provision for doubtful debts related to this debt of 15,000 dinars.
2- On 2/2/2020, a fire occurred in one of the companys branches, which resulted in losses in the burned goods amounting to 80,000 dinars.
3- On 28/2/2020, the prices of investments in the shares owned by the company decreased by 40,000 dinars from the recorded value of those investments in the companys books on 31/12/2019.
4- On 2/3/2020, 70% of the shares of Al-Manar Company were acquired at a cost of 400,000 dinars, and this resulted in a holding and subsidiary relationship between the two companies.
5- On 2/4/2020, the General Assembly approved the distribution of dividends to shareholders amounting to 150,000 dinars, noting that the Board of Directors had recommended the distribution of those profits on 3/6/2020.
Required: What is the action to be taken by the company related to the above events in accordance with Standard No. (10)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started