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In the annual general meeting of GAG Ltd, the directors were perturbed by the way the finance department dealt with intangible assets; provisions, contingent liabilities, contingent assets and financial assets. In the contemporary world of business, argued the directors of GAG Ltd, it is imperative for a middle management accountant to be skilled in all applied accounting practices and even interpret such practices for better understandability by users of financial information that he/she provides. The directors were particularly not happy the way intangible assets, provisions, contingent liabilities, contingent assets and liabilities were or were not recognised in the financial statement. In Uganda the securities market is shallow. It is in such markets that financial assets including those of GAG Ltd are traded to raise money for listed companies including government itself. GAG Ltd has purchased intangible assets which form part of the reporting problems as they can easily be kept off balance sheet or misreported. QN.1. Prepare a memo to management of GAG Ltd: a) Describe how management of GAG Ltd can raise long term finance. (9 Marks) b) With clear numerical illustrations differentiate between intangible assets and tangible assets providing their measurement, recognition and de-recognition criteria. marks) c) With numerical examples distinguish been contingent assets, contingent liabilities and provisions as used in financial reporting, (9 marks) Total Mark 25 QN.2. Write a memo with references to GAG Ltd: i) With clear numerical illustrations discussing the importance of control accounts. ii) Describe methods used in dealing with incomplete records and their applicability iii) Discuss the reasons for the dissolution of a partnership iiii) Comprehensively describe the importance and application of general and cash controls