Please help me Question 8Smitz Spa is preparing its opening IFRS statement of financial position on January 1, 2022. Under its previous GAAP, Smitz did notrecord a provision for litigation in the amount of €85,000 that would be recognized under IFRS. What is the entry (if any) needed torecord this adjustment at the date of issuance?Dr Retained earnings 85,000 Cr. Provision for litigation 85,000B Dr. Retained earnings 80,000 Cr. Inventory 8,000Dr Provision for litigation 85,000 Cr. Retained earnings 85,000O No entry needed.Question 9IFRS1 First-time Adoption of International Financial Reporting Standards defines the date of transition to IFRS as:The date at the start of the earliest period for which comparatives are provided in the first IFRS financial statements.® The date at the end of the earliest period for which comparatives are provided in the first IFRS financial statementsThe date at the start of the first IFRS reporting periodThe date at the end of the first IFRS reporting period

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Question 8 Smitz Spa is preparing its opening IFRS statement of financial position on January 1, 2022. Under its previous GAAP, Smitz did not record a provision for litigation in the amount of €85,000 that would be recognized under IFRS. What is the entry (if any) needed to record this adjustment at the date of issuance? Dr Retained earnings 85,000 Cr. Provision for litigation 85,000 Dr. Retained earnings 80,000 Cr. Inventory 8,000 Dr Provision for litigation 85,000 Cr. Retained earnings 85,000 No entry needed.

Question 8 Smitz Spa is preparing its opening IFRS statement of financial position on January 1, 2022. Under its previous GAAP, Smitz did not record a provision for litigation in the amount of €85,000 that would be recognized under IFRS. What is the entry (if any) needed to record this adjustment at the date of issuance? Dr Retained earnings 85,000 Cr. Provision for litigation 85,000 Dr. Retained earnings 80,000 Cr. Inventory 8,000 Dr Provision for litigation 85,000 Cr. Retained earnings 85,000 No entry needed.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 4RP

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