QUESTION 1: Financial Reporting Issues (24 marks) (a) MovingFeast Ltd operates mobile food trucks that provides a range of food and other products and services, at festivals, weddings, and other events. The accountant of Moving Feast Ltd is currently preparing its financial reports for the year ended 30 June 2019. The company is a reporting entity. The reports have not been completed as at the 17 August 2019. Required: Explain (with reasons) in your own words how and where (including class/category where applicable) the events/transaction described below would be treated, recognised and/or disclosed in the financial reports of Moving Feast Ltd for the year ended 30 June 2019. Note: You need to consider whether information about the event or transaction needs to be presented separately. Journal entries and actual disclosure notes are not required. 1. On 27 July 2019, the directors advised that a contract had been signed with Gordon Ramsay (a world famous chef). Gordon has agreed to design a special gourmet menu that will be sold from a number of Moving Feast's food trucks from 1 September 2019. This contract is expected to raise the profile of the company substantially and also attract a range of new customers and result in a large increase in revenues. However, the payment to be made to Gordon Ramsay is substantial, so it is not expected that profits will increase (or change significantly) for the year ended 30 June 2020 (due to the large payment/expense to Gordon Ramsay). QUESTION 1: Financial Reporting Issues (24 marks) (a) MovingFeast Ltd operates mobile food trucks that provides a range of food and other products and services, at festivals, weddings, and other events. The accountant of Moving Feast Ltd is currently preparing its financial reports for the year ended 30 June 2019. The company is a reporting entity. The reports have not been completed as at the 17 August 2019. Required: Explain (with reasons) in your own words how and where (including class/category where applicable) the events/transaction described below would be treated, recognised and/or disclosed in the financial reports of Moving Feast Ltd for the year ended 30 June 2019. Note: You need to consider whether information about the event or transaction needs to be presented separately. Journal entries and actual disclosure notes are not required. 1. On 27 July 2019, the directors advised that a contract had been signed with Gordon Ramsay (a world famous chef). Gordon has agreed to design a special gourmet menu that will be sold from a number of Moving Feast's food trucks from 1 September 2019. This contract is expected to raise the profile of the company substantially and also attract a range of new customers and result in a large increase in revenues. However, the payment to be made to Gordon Ramsay is substantial, so it is not expected that profits will increase (or change significantly) for the year ended 30 June 2020 (due to the large payment/expense to Gordon Ramsay)