Question
Question 5 (25 marks) You are provided with the following statement of financial position of Kuhle Ltd: Statement of financial position on 31 December ASSETS
Question 5 (25 marks) You are provided with the following statement of financial position of Kuhle Ltd: Statement of financial position on 31 December
| ASSETS | |
| Land and buildings | 165 |
| Vehicles | 85 |
| Furniture | 45 |
| Share capital ( 2 000 000 authorised NPV shares) | 125 |
| Cash on hand | 5 |
| Bank overdraft | (2) |
| Inventory | 26 |
| Trade and other receivables | 15 |
| Shareholders for dividends | 11 |
| Total assets | 475 |
| Equity and Liabilities | |
| Retained earnings | 305 |
| Trade and other payables | 110 |
| Long-term loans | 79 |
| Accumulated depreciation | 21 |
| Income tax expense | 30 |
| Total equity and liabilities | 515 |
Required: 1. Critically evaluate the presentation of the above statement according to the requirements of International Accounting Standards (IAS 1). (19 marks) 2. Explain the meaning of each of these terms and give an example in each case a. Contingent liability (3 marks) b. Reserve (3 marks)
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
