Answer:
Under IFRS, the building should be recorded at its historical cost minus its accumulated depreciation which is $450,000.
Explanation:
Under IFRS, IAS 16 Property, Plant and Equipment states that asset should be subsequently recorded following one the the following two models:
+ Cost model: The asset is carried at cost less accumulated depreciation and impairment;
+ Revaluation model: The asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation and impairment, provided that fair value can be measured reliably.
With information given in the question, there is lack of information about fair value of the building; that is whether the appraisal is done by the professional, independent appraiser or whether the price offer by potential buyer is the fair price in the market.
So, with given information, Cost model should be applied and the building should be recorded at its historical cost minus its accumulated depreciation which is $450,000.
Answer:
-Auditor
Explanation:
The auditor is responsible for conducting an independent examination of the financial statements and records of the company. he or she checks whether the company follows the accounting principles, norms, etc as prescribed and according to that he or she give the qualified or unqualified report
Therefore as per the given situation, the option a is correct
Answer:
C. Cost of Goods Sold: Understated, and Net Income: Overstated
Explanation:
The cost of goods can be defined as the amount that a business has to pay in other for them to get an inventory. the net income can be defined as the amount of money that is left from COGS and other expenditures that does not include taxes and payments of interest. Overstating the inventory causes the total amount of earnings to be overstated for that accounting period. while the cost of good sold would be understated
Answer:
the nominal annual interest rate on the payment plan is 15%
Explanation:
According to the question, a one-time payment for the speakers will cost $1,000
An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.
Calculating the total payment at tthe end of the payment plan will give
$150 + ($100 x 10months)
we have, $150 + $1,000 = $1,150.
This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.
Step 2:
To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.
$1,150-$1,000 = $150
then we have,
($150 ÷ $1,000) × 100%
= 0.15 × 100%
- 15%
The nominal annual interest rate is 15%.
Cheers.
Answer:
The net cash flow from operating activities = $98.0 million
Explanation:
See the following images to get proper explanation