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(ii) Para Ltd, a North Island furniture manufacturing business, has provided the following information to be considered in relation to the financial statements for the

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(ii) Para Ltd, a North Island furniture manufacturing business, has provided the following information to be considered in relation to the financial statements for the year ended 31st March 2019. REQUIRED Explain how the below two independent situations would affect the income statement and statement of financial position of Para Ltd as at the 31st March 2019 and describe what would be required to be reported and indicate where authoritative support can be gained from the financial reporting standards standards to support your decision. (Show necessary calculations where required.) (a) Para Ltd purchased a Machine for $110,000 on 1st October 2015. At the time of purchase, the machine's useful lifetime was estimated as 5 years and expected residual value of $10,000. On 1st October 2015, $20,000 worth of accessories were newly fixed to the machine in a way to improve the long term efficiency of the machine. When finalizing accounts for the year ended 31st Maro 2019, it was identified that this $20,000 amount was written off as an expense for the year of 2015/16. (There is no change to the originally expected residual value as a result of the new addition of $20,000) [8 marks] Question 1: Application of NZ IFRS 25 Marks (i) Fog Ltd, a North Island sports equipment manufacturing business, has provided the following information to be considered in relation to the financial statements for the year ended 31st March 2019. Preparation of financial statements was finalised by 20th April 2019 and financial statements were authorised for issue on 30th May 2019 by directors. AGM was held on 2nd June 2019. REQUIRED Consider each below situation separately and explain how the situations would affect the annual financial statements for Fog Ltd as at the 31st March 2019. Describe what would be required to be reported and indicate where authoritative support can be gained from the financial reporting standards to support your decision. (a) As per NZIAS10, which period should be considered as events after reporting period

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