Question
QUESTION 9 X Ltd is dependent upon its software to process its purchases and sale transaction and has a year end of 31 January. On
QUESTION 9 X Ltd is dependent upon its software to process its purchases and sale transaction and has a year end of 31 January. On 15 January 20.5, X Ltd approached a computer consultant to establish whether or not its software is compliant with its own new open source operating system. On 31 January 20.5, the consultant informed X Ltd that the software is not compliant and that X Ltd would need to spend about N$3 million to make its software compliant. The financial director of X Ltd has decided to provide for the amount of N$3 million in its accounting records for the financial year ended 31 January 20.6. X Ltd has not yet appointed a contractor to do the modifications. Required Discuss the financial directors decision to provide for the amount of N$3 million in the financial statements of X Ltd for the year ended 31 January 20.6. You must assume that the amount is material. Justify your answer by only referring to the requirements of the Framework.
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