c. In accordance with IAS: 12 Income Taxes, deferred tax liabilities are the amounts ofincome taxes payable in future periods in respect of taxable temporary differences.Required: Explain temporary differences.1d. Yompab Ltd is a listed manufacturing company which prepares its financial statements forthe year ended 31 October, 2018 in accordance with IFRS. The financial statements aredue to be authorized for issue on 15 January 2019.i.Yompab Ltd holds an investment in the shares of a listed company, Nanoni Ltd. DuringNovember 2018 there was a material fall in the value of Nanoni Ltd's shares. Analystsattribute the fall in value principally to a fraud dating back to December 2017 that wasdiscovered by Nanoni Ltd's management and announced publicly in November 2018.In December 2018, the directors of Yompab Ltd publicly announced a plan to reducethe workforce by 10% as a result of worsening economic conditions.ii.Required:Discuss the effects of each of the above items on the financial statements of Ypmpab Ltd for theyear ended 31 October 2018 in accordance with IAS 10 Events after the Reporting Period. QUESTION 1a. Kpogo Ltd has the following products in inventory at the end of 2019:UnitsCost per unit GH¢XYZ (completed)54022ABC (part complete)28026Each product normally sells at GH¢34 per unit. Due to the difficult trading conditions, Kpogo Ltdintends to offer a discount of 15% per unit and expects to incur GH¢4 per unit in selling costs.GH¢10 per unit is expected to be incurred to complete each unit of ABC.Required:In accordance with IAS 2 Inventories, at what amount should inventory be stated in the financialstatements of Kpogo Ltd as at 31 December 2019?b. According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors,an entity must select and apply its accounting policies consistently from one period to thenext and among various items in the financial statements. However, an entity may changeits accounting policies under certain conditions.Required:Identify the circumstances under which it may be appropriate to change accounting policyin accordance with the guidance given in IAS 8 Accounting Policies, Changes inAccounting Estimates and Errors.

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b. According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors an entity must select and apply its accounting policies consistently from one period to th next and among various items in the financial statements. However, an entity may chang its accounting policies under certain conditions. Required:

b. According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors an entity must select and apply its accounting policies consistently from one period to th next and among various items in the financial statements. However, an entity may chang its accounting policies under certain conditions. Required:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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