Question 1B Answer for (i)

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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Question 1B

Answer for (i)

B. For each of the following independent scenario, discuss the issue and describe the impact
on the audit report:
i. During the audit, the team discovers that one of the five development projects, valued at
RM880,000 and included as intangible assets, does not meet the criteria for
capitalisation. The finance director does not intend to change the accounting treatment
adopted as she considers this an immaterial amount.
Transcribed Image Text:B. For each of the following independent scenario, discuss the issue and describe the impact on the audit report: i. During the audit, the team discovers that one of the five development projects, valued at RM880,000 and included as intangible assets, does not meet the criteria for capitalisation. The finance director does not intend to change the accounting treatment adopted as she considers this an immaterial amount.
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