Which event after the reporting period would require adjustment? *
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Which event after the reporting period would require adjustment? *
Loss of plant as a result of fire
a major business combination
announcing a plan to discontinue an operation
all of the above
none of the above
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- Discuss whether and how a company should account for a revaluation increase and a revaluation decrease on property, plant and equipment. Discuss also the accounting treatment if such an increase or decrease is reversed. do not plagirialized the answerWhich of the following is an example of Discontinued Operations reported in a company’s income statement? Gain on disposal of a component of an entity Losses from fires Gains from sale of equipment Write-offs of inventoriesThe fuel and oil as a major line of business of San Miguel Enterprises becomes available for immediate sale in its present condition. The termination costs of employees resulting from the discontinuance should be A. Included in the computation of other comprehensive income B. Shown as other expense C. Shown as a prior period adjustment D. Netted against the income from operations of the component as part of discontinued operation E. None of themS1: The publication of interim financial reports is on a quarterly basis.S2: For financial statements at interim date, inventories shall be measured using the gross profit method because conducing inventory count is not required. * A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true
- 27. Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should A) include a credit to the equipment account. B) not be made if the equipment is still being used. C) include a credit to the equipment accumulated depreciation account. D) recognize an unusual loss for the period.There are various types of accounting changes, each of which is required to be reported differently.Required:1. What type of accounting change is a change from the sum-of-the-years’-digits method of depreciation to thestraight-line method for previously recorded assets as a result of new information related to production patterns? Under what circumstances does this type of accounting change occur?2. What type of accounting change is a change in the expected service life of an asset arising because of moreexperience with the asset? Under what circumstances does this type of accounting change occur?Which of the following accounting policies is an example of costs versus benefits constraint being exercised in the disclosure of financial information? Inventory is valued at lower of cost or market. Property, plant and equipment are appraised and revalued every three years. Biological assets are stated at fair value unless the fair value cannot be measured reliably. Research and development costs are expensed as incurred.
- Doowow Chemical Company determines that an extruder machine used in its operations has suffered an impairment in value because of technological changes. An entry to record the impairment should include ________. Group of answer choices a credit to the loss on impairment account a debit to the machinery accumulated depreciation account a debit to the machinery account a credit to machinery depreciation expense accountProvisions shall be recognized for all of the following, except a. Restructuring costs after a binding sale agreement had been signed b. Future refurbishment costs due to introduction of a new computer system c. Rectificationcosts relating to defective products sold d. Cleaning-up costs of contaminated land when an oil entity has a published policy that it will undertake to clean up all contamination that it causesA change in the expected service life of an asset arising because additional information has been obtained is: a. an accounting change that should be reported by restating the financial statements of all prior periods represented b. an accounting change that should be reported in the period of change and future periods if the change affects both c. a correction of an error d. not an accounting change
- If the estimated useful life of equipment changes, then this change requires OO a retroactive change in the amount of the periodic depreciation recognized in previous years. that income for the current year be increased. that the amount of the periodic depreciation be changed in the current year and in future years. that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.For each of the following independent scenarios, determine if each event is an accounting change, error, or neither. For each accounting change or error determine the method that should be used to account for the change or error in the current year financial statements: retrospective adjustment, prospective, or prior period adjustment. Change from LIFO to FIFO Inventory Method. - NEITHER Change in useful life of equipment from 10 years to 7 years. Accounting Error Change in depreciation method from Double Declining Balance to Straight Line. Write-down of inventory due to obsolescence. Settlement of lawsuit and receipt of damages from 5 years prior. Write-off of patent due to competing product. Prior year costs were recorded as expenses instead of Property, Plant and Equipment. Change in Allowance for Uncollectible Accounts due to increase in unpaid Accounts Receivable, changes estimate from 4% of credit sales to 6%.PPE of an entity was damaged due to a fire accident on 1 September 2014. the accident has caused a drastically drop in the efficiency of the PPE that wouldn’t happen in normal usage. The management is considering to recognize impairment loss for the damages occurred due to the accident. Following are the details that existed as on 1 September 2014: The carrying amount of PPE in the books of the entity stood OMR 121,500. The same type of new PPE would cost OMR 180000. The PPE could be sold for a gross amount of OMR 90,000 with dismantling cost of OMR 2000 and legal charges of OMR2000. The present values of future cash flow from the PPE if continued to be used for next three years would be OMR77370. The total impairment loss recognized for PPE as at 1st September 2014 would be; A.OMR 44130 B.OMR 35500 C.OMR 31500 D.No impairment
