Question
Question 1 10 Marks A newly appointed accountant, Mr Max of Bulla Ltd told to his team members that financial statements will be more comparable
Question 1 10 Marks
A newly appointed accountant, Mr Max of Bulla Ltd told to his team members that financial statements will be more comparable when our entity will use AASB/IFRS standards to prepare a set of financial statements consistent with other reporting entities.
Required:
- Do you agree with this statement or otherwise? Explain the above statement with four examples (Hint: AASB 116 requires that PPE must be valued at historical cost or fair value).
- If Bulla Ltd changes its accounting policies in the current year explain whether such changes need to be disclosed in the financial statement. If so, how?
Question 1 10 Marks
A newly appointed accountant, Mr Max of Bulla Ltd told to his team members that financial statements will be more comparable when our entity will use AASB/IFRS standards to prepare a set of financial statements consistent with other reporting entities.
Required:
- Do you agree with this statement or otherwise? Explain the above statement with four examples (Hint: AASB 116 requires that PPE must be valued at historical cost or fair value).
- If Bulla Ltd changes its accounting policies in the current year explain whether such changes need to be disclosed in the financial statement. If so, how?
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