
Introduction: Accounting principlesare set of rules to record and measure the economic activity in a business, methods used to measure economic activity is different around the world. Many factors influences development of accounting standards in a country, including its economy, legal, educational and political systems, etc. these differences have led to significant diversity in accounting standards from one nation to another. The lack of uniform set of accounting standards creates problems for companies, and its users. Significant steps have been taken by global economies to overcome this barrier, one of them is to move towards a single set of globally accepted reporting standards.
The standard setting process of IASB

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Chapter 12 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
- Walsh plc sells wash machines and provides a one-year warranty against faults occurring after sale. Platt estimates that if all goods under warranty at its statement of financial position date of 31 December 2022 need minor repairs the total cost would be £ 6 million. If all the products under warranty needed minor repairs the total cost would be £ 24 million. At 31 December 2023 these amounts have risen to £ 7 million and £ 26 million respectively. Based on previous years` experience, Walsh estimates that the 80% of the products will require no repairs, 18% will require minor repairs and 2% will require major repairs. During the year ended 31 December 2023 actual costs of repair under the warranty amounted to £ 1,400,000. Required: a. b. What are the distinctions between liabilities, provisions and contingent liabilities under IAS 37 “Provisions”? Explain the accounting treatment of the warranty in Walsh plc`s financial statements for the year ended 31 December 2023, qualifying…arrow_forwardPlease provide answer this financial accounting questionarrow_forwardI need help finding the accurate solution to this financial accounting problem with valid methods.arrow_forward
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