QUESTION ONE [25] Stizky Stu't Lid is a masufacturing campany angaged in the productian af adhesives. The camparny hes no perfomed wel over the past two finarciel years. To improve on the poor past protits, the board approved a RE00 000 actertising promation curing the year ended 30 June 2022 in arder to generate increased gales in the future. The edvertising promotion took place \{and wes paid tor\} during June 2022 The accountant insists on reccgnizing the R500 000 paymers as an asset at 30 June 2022 . Her reasening is that future salus wil increasa as the number of ouslamers grows dua to the atvertising campaigr. Required: Discuss whether you agree with the accountant, maiong ruference to the fremework. Provide an ahernase trestirent if you disagree. QUESTION TWO [25] Extracts of the Statement of Comprehenshe Income tor the year ended 31 December 2021 and the Stasemert of Financial Fosition ias at 31 Decenber 2021 are given below tar twa comparies viz. Ash Limited and Burton Limited Exiract of Statement of Compiehensive Income tor the year ended 31 December 2021: Adidtonal Infocmation: - Inventeries n5 at 31 Decrmber 2020 are 35 folons: Asi Limited ReOD 000 Buren Limitod R2at oco - Al sales and purchasna of inwentorins are cn credit. Required: Compare the perfermance of Ash Limited and Burtoin Limited (bath in same industry) with regard to QUESTION ONE [25] Stizky Stu't Lid is a masufacturing campany angaged in the productian af adhesives. The camparny hes no perfomed wel over the past two finarciel years. To improve on the poor past protits, the board approved a RE00 000 actertising promation curing the year ended 30 June 2022 in arder to generate increased gales in the future. The edvertising promotion took place \{and wes paid tor\} during June 2022 The accountant insists on reccgnizing the R500 000 paymers as an asset at 30 June 2022 . Her reasening is that future salus wil increasa as the number of ouslamers grows dua to the atvertising campaigr. Required: Discuss whether you agree with the accountant, maiong ruference to the fremework. Provide an ahernase trestirent if you disagree. QUESTION TWO [25] Extracts of the Statement of Comprehenshe Income tor the year ended 31 December 2021 and the Stasemert of Financial Fosition ias at 31 Decenber 2021 are given below tar twa comparies viz. Ash Limited and Burton Limited Exiract of Statement of Compiehensive Income tor the year ended 31 December 2021: Adidtonal Infocmation: - Inventeries n5 at 31 Decrmber 2020 are 35 folons: Asi Limited ReOD 000 Buren Limitod R2at oco - Al sales and purchasna of inwentorins are cn credit. Required: Compare the perfermance of Ash Limited and Burtoin Limited (bath in same industry) with regard to
