URGENTTTT PLSSS

Question: Asset definition and recognition Dalmatian Ltd is public company listed on the ASX in the business of manufacturing furniture. In 20X3 Dalmatian installed solar panels on their factories at a total cost of $500,000. The amount is considered material for the company. The accountant for Dalmatian Ltd must decide how they will account for this expenditure in the company's financial statements for the financial year ended 30 June 203. Additional information - It is expected that the solar panels will reduce the company's electricity costs by approximately 40% per annum for the next 15 years. - The factories on which the solar panels are installed are owned by Dalmation Ltd. - Executive directors receive an annual bonus when profit exceeds 10% of total assets. - The long-term debt agreement restricts borrowing to a maximum of 65% of total assets. Required: 1. Identify the components of accounting policy choice that must be considered when deciding how to account for the expenditure on solar panels. 2. Explain how the expenditure on solar panels should be accounted for by Dalmation Ltd for the year ended 30 June 20X3 in accordance with the Conceptual Framework. Write any journal entries required. Include references from relevant paragraphs in the Conceptual Framework to support your answer. 3. Consider the implications of accounting theory for accounting policy choice and explain whether the Board would be happy with the accounting treatment you have selected in your answer to question 2. Note, your answers must be clear and persuasive, and demonstrate your understanding of the issues. The position taken in each answer must be clearly identified and supported with appropriate evidence, including references were necessary. Answers must not be copied from any source without acknowledgement