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This question has 3 separate elements. They are not related to each other and should be answered independently of each other. a) Bagpipes plc makes

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This question has 3 separate elements. They are not related to each other and should be answered independently of each other. a) Bagpipes plc makes a general allowance for doubtful receivables of 2% of outstanding balances, based on management's past experience. In the next financial year, bad debts are expected to run at 4% due to a worsening economic outlook. The trade receivables balance before allowance for adjustments is 25,480,000 as at this financial year end. The finance manager has reviewed the receivables listing and has identified 27 balances totalling 870,000 that she doubts will be collected from customers. Required: Calculate or state the allowance for doubtful receivables that Bagpipes plc should recognise under IFRS 9 Financial Instruments. Explain your answer. Note: Ignore the impact of any prior year allowance. 4 marks b) Lionfish Ltd is having a board meeting. The board has requested an explanation of the key aspects of IFRS 8 Operating Segments and how it will apply to the company. In its management accounts, Lionfish disaggregates performance into head office (which does not generate revenue but has costs), and three operating divisions, each of which generates revenue (all of which is from external customers) and has costs. All the operating divisions are profitable. The Asia-Pacific operating division has only just been established, so is very small in terms of its assets, revenue and profit as a proportion of the whole company. The board as a whole takes votes on major strategic decisions and resource allocation. Required: Prepare the explanation required by the board. 8 marks c) Snow Leopard plc is closing a major production facility in Eastern Europe and moving production back to its UK facilities, which have spare capacity. This plan has been announced to staff and publicly in the trade press, three months prior to the 202 year end. The fair value of the production facility was 2,400,000 at the 31 March 202 year end. Selling costs are estimated at 2% of this value, with tax comprising 5% of these selling costs. The facility is already on the real estate market, being advertised at its fair value. The carrying value of the facility in Snow Leopard plc's prior year financial statements was 2,750,000. The facility is depreciated 2% per year on a straight line basis. The facility generated revenue of 5,400,000 in the 202 financial year, with cost of sales of 3,200,000 and operating expenses of another 580,000. There were no other expenses relating to the production facility. Required: Prepare the disclosures required on the face of Snow Leopard plc's 202 Statement of Financial Position and Income Statement, under IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations. Note: Ignore notes disclosures. 8 marks

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