2)lriga Company issued the 2021 financial statements on March 1, 2022. The entity provided the following data for the year ended December 31, 2021: Amount owing to another entity for services rendered during December 2021 Estimated long service leave owing to employees in respect of past services Estimated cost of relocating an employee from head office to a branch in another City (employee will physically relocate in January 2022) 300,000 1,200,000 100,000 150,000 Estimated cost of overhauling machine every 5 years What amount should be recognized as provision on December 31, 2021? A. 1,200,000 C. 1,600,000 B. 1,300,000 D. 1,750,000

2)lriga Company issued the 2021 financial statements on March 1, 2022. The entity provided the following data for the year ended December 31, 2021: Amount owing to another entity for services rendered during December 2021 Estimated long service leave owing to employees in respect of past services Estimated cost of relocating an employee from head office to a branch in another City (employee will physically relocate in January 2022) 300,000 1,200,000 100,000 150,000 Estimated cost of overhauling machine every 5 years What amount should be recognized as provision on December 31, 2021? A. 1,200,000 C. 1,600,000 B. 1,300,000 D. 1,750,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 45P

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x[Company issued its 2020 financial statements on March 1, 2021. The following data are provided by the entity for the year ended December 31, 2020. Amount owing to another entity for services rendered during December 2020 P500,000 Estimated long service leave owing to employees in respect of past services 750,000 Estimated cost of allocating an employee from head office to a branch in another city (employee will physically relocate on January 2021) Estimated cost of overhauling machine every 5 years (the machine is 5 years old on December 31, 2012) 250,000 100,000 Determine the provision to be recognized on December 31, 2020.
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