Question 2 (2+3=5 marks) In terms of current Australian Accounting Standards what does the term 'material' mean and why is it important? Please write your answer in the grey text box provided below. Question 1 (5 marks) It can be argued that providing segment data leads to a competitive disadvantage for companies that are operating successfully. Evaluate this argument. Question 3 (5 marks) You have a friend who is considering purchasing some shares in Sydney-Harbour Bridge- for-sale Ltd. The shares are currently trading on the stock exchange at $4.20 each. The financial statements of the company show the net assets are $250,000 and there are 150,000 shares on issue, giving a book value of $1.67 per share. Your friend is confused as to why the financial statements do not reflect the measure of the value of the company on the stock exchange. Explain why this is the case. Question 4 (6 marks) In calculating the provision for employee benefits ABC Ltd includes the value of employee long service leave entitlements. Explain how these entitlements differ from annual leave and sick leave entitlements. Given that most employment awards entitle the employee to long service leave after 10 or 15 years of service, apply the definition and recognition criteria for liabilities to suggest when an entity should start providing for long service leave. Please write your answer in the grey text box provided below. Question 5 (6 marks) What is theory and how would you evaluate whether a theory is 'good' or 'bad'? Is there actually such a thing as a 'good' or 'bad' theory? Please write your answer in the grey text box provided below. Question 6 (3+2=5 marks) If two different teams of accountants were given details of all the transactions and events with which an organisation was involved throughout the financial year, and each team was asked to separately prepare financial statements for that organisation, then it is unlikely they would produce identical financial statements. Why is this the case? Provide two examples of possible differences in approach. Question 7 (5 marks) A survey by CPA Australia shows that at least one in four small businesses are affected by fraud. Employee fraud was the most common type reported. Comment on whether fraud is just part of the cost of doing business. Should the cost be passed onto customers? Please write your answer in the grey text box provided below. Question 8 (5+5=10 marks) In 2023 Collingwood Ltd commenced operating a power generating facility in outback Australia. The company has a legal obligation to remediate the site when it closes the operation which is expected to be in 20 years' time. As at 30 June 2023 the best estimate to remediate the site (in 2043) is $10,000,000. One year later the best estimate of remediating the site (in 19 years' time) is $15,000,000. The pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the liability were 7% as at 30 June 2023 and 8% as at 30 June 2024. Provide the journal entries in relation to the above obligation for the years ending 30 June 2023 and 30 June 2024. Ensure narrations are shown for all journal entries. Question 9 (5 marks) According to AASB 116, would you expense or capitalise expenditure incurred in repairing an asset? Explain your response. Please write your answer in the grey text box provided below. Question 10 (5 marks) Do we need a conceptual framework in Australia? Why? Please write your answer in the grey text box provided below. Question 11 (8 marks) Bill Bloggs has 10,000 shares in Carlton Ltd. The current price in Carlton Ltd is $9.50. Bill Bloggs would like to sell the shares immediately, but certain restrictions have been imposed upon him that mean he will have to wait one month. Concerned about fluctuating prices, he decides to enter into a futures contract on Carlton Ltd shares in which he takes a sell position. The price of Carlton Ltd future is $9.70, and his futures contract is for 10,000 units. One month later the price of Carlton Ltd shares has risen to $12.10 and a Carlton Ltd future cost $12.29. Bill Bloggs closes out his futures contract and sells his shares. How much does Bill Bloggs receive from the above transaction? Question 12 (3+3=6 marks) Beachboys Ltd is marketing a 'surfing bundle' in which for $1,100, it provides customers with a surfboard (which retails for $850), a wetsuit (which retails for $250) and five lessons (which retail separately for $200). You are required to determine: a. Whether separate performance obligations exist, and to explain why you made this judgement. b. How much of the transaction price to allocate to each performance obligation? Please write your answer in the grey text box provided below. Question 13 (6 marks) Is the rule in AASB 6 that permits exploration and evaluation expenditure to be carried forward (capitalised) in those situations where activities in the area of interest have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of recoverable reserves', consistent with the asset recognition criteria provided in the Conceptual Framework for Financial Reporting? Please write your answer in the grey text box provided below. Question 14 (4+ 4 = 8 marks) Richmond Ltd owes Geelong Ltd an amount of $200,000 as at 30 June 2023, which is the end of Geelong Ltd.'s reporting period. On 27 July 2023 Geelong Ltd receive a letter from liquidators advising of the bankruptcy of Richmond Ltd. The letter indicated that Richmond Ltd ceased trading in June 2023 and Geelong Ltd is likely to receive a pay-out of 25 cents in the dollar. Provide the journal entry that Geelong Ltd would make to account for the above transaction. Ensure narrations are included with each journal entry. In addition, discuss your response if a fire destroyed Geelong Ltd.'s warehouse and stock on 5 July 2023. Question 15 (5 marks) Outline activities that accountants could take to assist their company discharge their social responsibilities Please write your answer in the grey text box provided below. On 1 July 2022 Weagles Oz Ltd enter into an agreement to borrow (US $) 1,500,000 from JoeB Ltd (USA). JoeB Ltd sends the loan money to Weagles Oz Ltd bank account in Australia. The loan is for 8 years and requires the payment of interest at the rate of 10% per annum on 30 June each year. We assume this equates to Weagles Oz Ltd.'s normal borrowing rate such that the carrying amount of the debt would also equal its fair value. Weagles Oz Ltd.'s reporting date is 30 June. The concept of time value of money and taxation shall not be given consideration in this instance. The relevant exchange rates are: 1 July 2022: A$1 = US $1.25 30 June 2023: A$1 = US $1.10 Provide all the journal entries in the books of Weagles Oz Ltd for the year ending 30 June 2023 to account for the above transactions. Ensure narrations are included with your journal entries