Determine how the following should be shown in the financial statements the relevant extracts from the financial statements (including the notes) of ChubbyChocs as at 30 June 2015, in compliance with AASB 137 and related International Financial Reporting Standards.The following information is provided. Chubby Chocs was unsuccessful in defending a peanut allergy case .The court award $1,500,00 to the plaintiffs.Chubby Chocs had paid $800,000 at 30 June 2015. 2 Chubby Chocs commenced litigation against an advisor for negligent advice about an issue related to a conveyor belt.The court found in favour of Chubby Chocs .The hearing for damages had not yet commenced but Chubby Chocs estimated it would receive about $425,000. Chubby Chocs signed an agreement with Banksweet that it would guarantee the loan by Banksweet to CCC ,a subsidiary of Chubby Chocs for $3,200,000 at 30 June 2015.CCC was in a strong financial position at 30 June 2015 . (a) Determine whether the unpaid amount owing as a result of the peanut allergy case is a liability or a provision. (b) Determinewhetherthereceiptofdamagesforthenegligentadvicemeetsthedefinition of an asset or a contingent asset. (c) Determine whether the bank guarantee meets the definition of a provision or a contingent liability. (Ignore AASB 139 in this regard.)
Determine how the following should be shown in the financial statements the relevant extracts from the financial statements (including the notes) of ChubbyChocs as at 30 June 2015, in compliance with AASB 137 and related International Financial Reporting Standards.The following information is provided.
Chubby Chocs was unsuccessful in defending a peanut allergy case .The court award $1,500,00 to the plaintiffs.Chubby Chocs had paid $800,000 at 30 June 2015.
2
Chubby Chocs commenced litigation against an advisor for negligent advice about an issue related to a conveyor belt.The court found in favour of Chubby Chocs .The hearing for damages had not yet commenced but Chubby Chocs estimated it would receive about $425,000.
Chubby Chocs signed an agreement with Banksweet that it would guarantee the loan by Banksweet to CCC ,a subsidiary of Chubby Chocs for $3,200,000 at 30 June 2015.CCC was in a strong financial position at 30 June 2015 .
(a) Determine whether the unpaid amount owing as a result of the peanut allergy case is a liability or a provision.
(b) Determinewhetherthereceiptofdamagesforthenegligentadvicemeetsthedefinition of an asset or a contingent asset.
(c) Determine whether the bank guarantee meets the definition of a provision or a
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