Struggling in this question, it is about financial reporting of accounting.

Please Help me :}

Question 1 (15 marks) In stock market, the share price of stock may fluctuate a lot within a day. Some investors believe that \"timeliness\" should be the most important criterion in order to make financial information useful. Please discuss whether you agree with their opinion or not and support your view with reference to The Conceptual Framework of Financial Reporting. Question 2 (35 marks) Johnson Development Limited (\"JD Limited\") purchased a piece of land and developed an office building for its own use. The details of the expenditures related to this development project were as follow: $'000 Land Land cost Legal fee for the acquisition of the land 320,000 5,000 Office building Labour and materials for construction 56,900 Site preparation costs: Water, drainage and gas pipes installation Surveyor services Labour costs 25,000 8,000 3,000 Interior design and renovation 11,400 3-year building maintenance services 3,600 General overhead 5,200 The construction of the office building was completed on 1 April 2014 with expected useful life of 40 years with no residual value. JD Limited adopts straight-line depreciation on a monthly basis for its non-current assets. Its year end date is 31 December. Revaluation model has been adopted for land and building while cost model has been adopted for equipment and machinery. Revaluation had been done on 31 December 2015, 2016 and 2017 and the fair values of land and building were as follow: Land Building 31 December 2015 $480,000,000 $107,250,000 31 December 2016 $423,000,000 $86,000,000 31 December 2017 $301,000,000 $62,000,000 Required: a. Determine the cost of land and building. b. Prepare the journal entries (with narratives) for the year ended 31 December 2015, 2016 and 2017. (5 marks) (20 marks) c. Provide the extracts of statement of financial position and the statement of profit or loss and other comprehensive income for JD Limited for the periods ended 31 December 2016. Question 3 (10 marks) (35 marks) Good Game Ltd (\"GG Ltd\") is a running a computer game business in Hong Kong. Details of its non-current assets as at 31 December 2015 and 2016 were: Office $'000 As at 31 December 2015 Cost 60,000 Accumulat (8,000) ed depreciatio n/ amortization Carrying 52,000 amount Cyber game centre $'000 Equipment $'000 Total $'000 80,000 (22,000) 1,500 (200) 141,500 (30,200) 58,000 1,300 111,300 As at 31 December 2016 Fair value 73,000 59,000 620 Additional information: Office The office had been used by GG Ltd as back office. From 1 November 2016, the office was let to GG Ltd's subsidiary HH Company and charged $100,000 each month. The fair value of the Office on 1 November 2016 was $70 million. Certain building management services such as day-to-day cleaning and security were provided. Cyber game centre The game centre covers an area of 6,000 square feet and had been operated by GG Ltd for many years. The area of the game centre could not be sold separately. The business of cyber game had not been growing as expected due to fierce market competition. On 1 May 2016, GG Ltd decided to let the game centre to an unrelated company Pineapple Limited which sells smart phones, computer hardware and software. Meanwhile, GG Ltd retained 100 square feet for selling its own game products. The fair value of the game centre on 1 May 2016 was $60 million. GG Ltd adopts cost model for its property, plant and equipment and intangible assets whereas fair value model for investment property. Depreciation is calculated based on 5% per annum based on cost for the office, the game centre and the equipment. It requires full-month depreciation and no depreciation is necessary for the month when the asset is derecognized. Required: a. For the year ended 31 December 2016, explain the accounting treatments with appropriate Hong Kong Accounting Standard for: (i) (ii) b. c. Office Cyber game centre Determine the carrying amount of each of the non-current assets of GG Limited as at 31 December 2016. Prepare an extract of financial statements of GG Limited as at (6 marks) (6 marks) (8 marks) 31 December 2016. (15 marks) Question 4 (15 marks) Yellow River Ltd is an investment company and a property developer. It adopts cost model for own use properties and fair value model for investment properties. It had the following properties at 31 December 2016, the end of the financial year. Nature Building 1 Building 2 Investment property Investment property under construction Original cost $'M 18 10 Carrying amount $'M 50 28 All buildings were acquired / started construction in July 2010 with estimated useful life of 50 years and zero residual value. Depreciation (if necessary) is calculated on a monthly basis starting from July 2010. Yellow River Ltd carried out the following activities in 2017: Refurbish Building 1 at a cost of $2M on 1 April. The refurbishment work was completed on 31 May 2017 and after refurbishment, Yellow River was able to request a higher rental from the market. The fair value at that date was $70M. Completed the construction of Building 2 on 31 August 2017 with additional expenditure of $6M. An external valuer has been appointed to perform a valuation for all the properties. The estimated fair values at 31 December 2017 are as follows: Building 1 Building 2 31 December 2017 ($'M) 80 30 The valuer did not revise the estimated useful life of the buildings after the valuation. Required: a. Prepare accounting journal entries (with narratives) for the properties for the year ended 2017. (15 marks) [End of TMA 1]