Question 4 a)For each of the following material after reporting period events of Andrew Ltd state whether adjustment or disclosure is required in the 30 June 2022 financial statements. Give your reason(s). If adjustment is required, state the nature of the adjustment. i)28 July 2022: One of the company’s four offices was damaged by a flood. Insurance will not cover the cost of repairs, estimated at $400,000 ii)30 July 2022: a debtor owing $ 150 000 was declared insolvent. The debtor had not made any payments in the last four months and half of the debt had already been treated as doubtful debt at year end b) Segments Revenue(all external) Profit/(Loss) Assets Liabilities Mining 100000 (57000) 61000 39000 Food 13000 (7000) 31000 19000 Hotels 12000 2000 14000 7000 Travel 17000 3000 41000 20000 142000 (59000) 147000 85000 Use the materiality criterion in AASB 8 Operating Segments to determine which of the divisions are reporting business segments. Show all supporting information clearly identifying why?
Question 4
a)For each of the following material after reporting period events of Andrew Ltd state whether adjustment or disclosure is required in the 30 June 2022 financial statements. Give your reason(s). If adjustment is required, state the nature of the adjustment.
i)28 July 2022: One of the company’s four offices was damaged by a flood. Insurance will not cover the cost of repairs, estimated at $400,000
ii)30 July 2022: a debtor owing $ 150 000 was declared insolvent. The debtor had not made any payments in the last four months and half of the debt had already been treated as doubtful debt at year end
b)
|
Segments |
Revenue(all external) |
|
Assets |
Liabilities |
|
Mining |
100000 |
(57000) |
61000 |
39000 |
|
Food |
13000 |
(7000) |
31000 |
19000 |
|
Hotels |
12000 |
2000 |
14000 |
7000 |
|
Travel |
17000 |
3000 |
41000 |
20000 |
|
|
142000 |
(59000) |
147000 |
85000 |
Use the materiality criterion in AASB 8 Operating Segments to determine which of the divisions are reporting business segments. Show all supporting information clearly identifying why?
Step by step
Solved in 2 steps
