QUESTION 4 - 10 marks There are two scenarios below. You must attempt both by applying international accounting standards. The word count for your answer to each scenario is 150 words. Scenario 1 Frogmore Co purchased an asset on 15 January 2020 at a cost of 90,000. Frogmore received a government grant in relation to the cost of this asset of 15,000. Frogmore have decided to write off the grant income against the cost of the non-current asset, in accordance with IAS20. The asset has a useful economic life of nine years. Required: What is the carrying amount of the asset as at the years ending 31 December 2020 and 2021? (5 marks) Scenario 2 Jones Plc is an entity that is preparing its financial statements for the year ended 31st March 2021. On 24th April 2021, prior to the authorisation of the financial statements, the internal audit department discovered a fraud by an employee, who had been making payments to a fictitious supplier during the year to 31st March 2021. Investigation showed that the total amount of the fraud amounted to 900,000, which is considered to be material. Required: Briefly state the requirements of IAS10 in relation to this scenario and how the fraud should be treated in Jones' financial statements for the year ended 31st March 2021 in accordance with the standard. (5 marks) END OF EXAMINATION PAPER