You are an auditor of the company ABC. During the audit of the accounting statements it is found that ABC has recognized in its assets the following elements: a) goods which are immovable for a period of 3 years and which are valued at their acquisition price b) goods owned by XIZ that it has to sell on its behalf with a commission of 10%; and c) the remuneration of the lawyer who represented the company in a legal dispute. Based on the conceptual framework of accounting, comment on the above.

You are an auditor of the company ABC. During the audit of the accounting statements it is found that ABC has recognized in its assets the following elements: a) goods which are immovable for a period of 3 years and which are valued at their acquisition price b) goods owned by XIZ that it has to sell on its behalf with a commission of 10%; and c) the remuneration of the lawyer who represented the company in a legal dispute. Based on the conceptual framework of accounting, comment on the above.

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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