Provisions (15 marks) As of December 31,203, Parvoz Company has accounts receivable from the following customers, payments for which are overdue: - counterparty, A - 2,450,000 UZS, delay - 112 days; - counterparty B - 4,000,000 UZS, delay - 80 days; - counterparty C - 1,000,000 UZS, delay - 55 days; - counterparty D - 1,000,000 UZS, delay - 10 days. At the same time, the head of the department for work with accounts receivable has the following information in relation to the above counterparties: - counterparty, A - bad debt to be collected in full amount of the debt; - counterparty B - the estimated amount of debt not subject to return as of December 31 , 203 is equal to UZS 1,000,000; - counterparties C and D - the estimated amount of debt not subject to return as of December 31,203 is UZS 1,000,000 each. According to the company's accounting policy, the amount of provision for the bad and doubtful debts is equal to 100 percent for bad debt with overdue amount for more than 90 days and 50 percent for doubtful debts with the due amount for the period between 45 and 90 days. Required: - Identify whether the accounting policy regarding the provisions for bad and doubtful debts is consistent with the requirements of IFRS/IAS. If there are inconsistencies, identify and explain them. - Estimate the amount of the provisions to be create in accordance with IFRS/IAS. - Provide journal entries for the adjustments. Provisions (15 marks) As of December 31,203, Parvoz Company has accounts receivable from the following customers, payments for which are overdue: - counterparty, A - 2,450,000 UZS, delay - 112 days; - counterparty B - 4,000,000 UZS, delay - 80 days; - counterparty C - 1,000,000 UZS, delay - 55 days; - counterparty D - 1,000,000 UZS, delay - 10 days. At the same time, the head of the department for work with accounts receivable has the following information in relation to the above counterparties: - counterparty, A - bad debt to be collected in full amount of the debt; - counterparty B - the estimated amount of debt not subject to return as of December 31 , 203 is equal to UZS 1,000,000; - counterparties C and D - the estimated amount of debt not subject to return as of December 31,203 is UZS 1,000,000 each. According to the company's accounting policy, the amount of provision for the bad and doubtful debts is equal to 100 percent for bad debt with overdue amount for more than 90 days and 50 percent for doubtful debts with the due amount for the period between 45 and 90 days. Required: - Identify whether the accounting policy regarding the provisions for bad and doubtful debts is consistent with the requirements of IFRS/IAS. If there are inconsistencies, identify and explain them. - Estimate the amount of the provisions to be create in accordance with IFRS/IAS. - Provide journal entries for the adjustments
