The Directors of Caln Ltd has asked you how the following wi be treated in the financial statements for the year ended 31 March 2019. (a) The auditors have requested you to reduce the value of inventory from BWP 145,320 to BWP 111,562 ( value the inventory was sold) after 31st March. (b) On the 5th of April, the Director announced that a dividend of BWP105,000 should be paid as dividend to the ordinary shareholders.The Finance Director is aware of this but did not include it in the liability. REQUIRED Comment on the above transactions and explain how the Directors should account for them in the financial statements for the year ended 31 March 2019, where appropriate make reference to international accounting standards (IAS) to validate your answer
The Directors of Caln Ltd has asked you how the following wi be treated in the financial statements for the year ended 31 March 2019. (a) The auditors have requested you to reduce the value of inventory from BWP 145,320 to BWP 111,562 ( value the inventory was sold) after 31st March. (b) On the 5th of April, the Director announced that a dividend of BWP105,000 should be paid as dividend to the ordinary shareholders.The Finance Director is aware of this but did not include it in the liability. REQUIRED Comment on the above transactions and explain how the Directors should account for them in the financial statements for the year ended 31 March 2019, where appropriate make reference to international accounting standards (IAS) to validate your answer
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 9RE: For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the...
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The Directors of Caln Ltd has asked you how the following wi be treated in the financial statements for the year ended 31 March 2019.
(a) The auditors have requested you to reduce the value of inventory from BWP 145,320 to BWP 111,562 ( value the inventory was sold) after 31st March.
(b) On the 5th of April, the Director announced that a dividend of BWP105,000 should be paid as dividend to the ordinary shareholders.The Finance Director is aware of this but did not include it in the liability.
REQUIRED
Comment on the above transactions and explain how the Directors should account for them in the financial statements for the year ended 31 March 2019, where appropriate make reference to international accounting standards (IAS) to validate your answer
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