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Objective The objective of this report is to analyse the Australian Conceptual Framework in accounting standard setting and apply the related key concepts to contemporary

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Objective The objective of this report is to analyse the Australian Conceptual Framework in accounting standard setting and apply the related key concepts to contemporary business practices. Your discussion should be aligned with the conceptual Framework for Financial Reporting and relevant AS8s to support your analysis. JB Hi-Fi Led has assets with the following costs and fair values as at 30 June 2019, Assets type Inventory Machinery Total Cosa $836,200.000 $40,800,000 $927.500,000 Fair value $912.000.000 S46.000.000 $958.000.000 The company decided to measure the assets at cost and therefore disclosure the assets in the statement of financial position (balance sheet) at an amount of $927.5 million despite the fact that it could receive 5958 million at the time if it sold them You are required to answer the following questions: Part A 1) Would such financial statements be true and fair if the assets were disclosed at a total of S927.5 million? (4 marks) 2) Would such financial statements be true and fair if the assets were disclosed at a total of S958 million (6 marks) Part B Assume if the assets were recorded as following as at 30 June 2019: Assets type Cost Fair value Inventory 5886,700,000 5830,000,000 Machinery $40.8000000 $36.000.000 Total $927.500,000 $866.000.000 3) Would such financial statements be true and fair if the assets were disclosed at a total of $866 million because inventory and machinery actually could be sold at those values? (6 marks) Objective The objective of this report is to analyse the Australian Conceptual Framework in accounting standard setting and apply the related key concepts to contemporary business practices. Your discussion should be aligned with the conceptual Framework for Financial Reporting and relevant AS8s to support your analysis. JB Hi-Fi Led has assets with the following costs and fair values as at 30 June 2019, Assets type Inventory Machinery Total Cosa $836,200.000 $40,800,000 $927.500,000 Fair value $912.000.000 S46.000.000 $958.000.000 The company decided to measure the assets at cost and therefore disclosure the assets in the statement of financial position (balance sheet) at an amount of $927.5 million despite the fact that it could receive 5958 million at the time if it sold them You are required to answer the following questions: Part A 1) Would such financial statements be true and fair if the assets were disclosed at a total of S927.5 million? (4 marks) 2) Would such financial statements be true and fair if the assets were disclosed at a total of S958 million (6 marks) Part B Assume if the assets were recorded as following as at 30 June 2019: Assets type Cost Fair value Inventory 5886,700,000 5830,000,000 Machinery $40.8000000 $36.000.000 Total $927.500,000 $866.000.000 3) Would such financial statements be true and fair if the assets were disclosed at a total of $866 million because inventory and machinery actually could be sold at those values? (6 marks)

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