The financial statements of Anglo American Platinum Limited (Amplats) are presented in Appendix B fol- lowing the

Question:

The financial statements of Anglo American Platinum Limited (Amplats) are presented in Appendix B fol- lowing the financial statements for Eastern Platinum Limited (Eastplats) in Appendix A.

Instructions

(a) Eastplats has a non-current liability called Provision for Environmental Rehabilitation. Amplats has a similar account called Environmental Obligations. These accounts represent estimates of environmental cleanup costs that the company will pay for later. Do you think accrual adjusting entries are made to these accounts at the end of the year? Why or why not? Is it likely that accrual entries would be made to cash accounts?

(b) Which of the following Eastplats accounts are more likely to have adjusting entries recorded in them: trade and other receivables or issued capital; accounts payable or inventories?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...