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The financial statements of Chaos Ltd, a listed European company, show the following amounts on year - end 31 Dec 2015 Revenue 120 mio
The financial statements of Chaos Ltd, a listed European company, show the following amounts on year - end 31 Dec 2015 Revenue € 120 mio Profit before taxation € 25 mio Net assets € 460 mio In July 2015 legal proceedings were instigated for serious breach of health and safety legislation amounting to € 10 mio. The directors of Chaos Ltd have not included a provision as the payment is only expected after 31 Dec 2018. Consequence for the audit?
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The key issue in this scenario is the legal proceedings and the potential liability of 10 million related to the breach of health and safety legislati...
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
