You are the partner in charge of the audit of Macaranga Limited. The financial year end of
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Question:
- You are the partner in charge of the audit of Macaranga Limited. The financial year end of the company is 31 August 2016 and the directors wish to approve the financial statements for issue on 15 October 2016.In finalizing the financial statements the directors wish to create an accrual for training and development costs of R600 000, of which R450 000 relates to training and development completed at 31 August 2016 and R150 000 relates to training and development undertaken between, September 2016 and 30 September 2016. All the training and development cost relate to the financial year ended 31 August 2016.
- Required:
- Discuss, with reasons, whether or not you agree with the director’s treatment of the provision for training and development costs.
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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