safety Acme Manufacturing has determined that all annual safety audits will be managed as attorney-client privileged. The auditor will be responsible for conducting the audit and completing the report to be submitted directly to the in-house legal counsel. The in-house legal counsel will then distribute the report to a select group of people within the organization. Shelly, the manager for the east region, would like […]

Security Dave is the new security manager for Acme Logistics. He is a recent graduate with a bachelor’s degree in security management and has only been with Acme for three months. Dave had not yet been hired when the annual security audit was conducted six months ago. He is appreciative of the effort the auditor has made to follow up through e-mail. However, Dave’s lack […]

On 5 June 2013 inventory is purchased for resale on credit from Henwood Ltd for the value of £550. Purchases 2013 £ 2013 £ 5-Jun Capital 550 Henwood Ltd. 2013 £ 2013 £ 5-Jun Purchases 550

Advertising of £80 is paid by cheque on 7 June 2013. Advertising 2013 £ 2013 £ 7-Jun Bank 80 Bank 2013 £ 2013 £ 3-Jun Capital 2,000 7-Jun Advertising 80

On 17 June 2013 the account with Henwood Ltd is settled in full by cheque. Henwood Ltd. 2013 £ 2013 £ 7-Jun Bank 550 5-Jun Purchases 550 Bank 2013 £ 2013 £ 3-Jun Capital 2,000 7-Jun Advertising 80 17-Jun Henwood Ltd. 550

On 20 June 2013, the owner of the business takes £30 out of the business bank account for personal use. Drawings 2013 £ 2013 £ 20-Jun Bank 30 Bank 2013 £ 2013 £ 3-Jun Capital 2,000 7-Jun Advertising 80 17 Jun Henwood Ltd 550 20 Jun Drawings 30

Open and maintain the ledger accounts of P Shortland based on the following transactions: 1 November Paid £2,000 of own money into bank. 4 November Bought second-hand car for business use on credit from J Bellwood for £1,1300. 7 November Withdrew £200 out of bank for use as petty cash. 12 November Paid Bellwood cheque £500 towards car purchase.

Items not recognised under previous GAAP Entity A acquired Entity B but did not capitalise B”s finance leases and internally generated customer lists under its previous GAAP. Upon first-time adoption of IFRSs, Entity A recognises the finance leases in its opening IFRS statement of financial position using the amounts that Entity B would recognise in its opening IFRS statement of financial position. The resulting adjustment […]

The following transactions relate to H Taylor, a customer of the firm, for February 2015. Construct the ledger account of Taylor for the following transactions and calculate the balance on his account by the end of the month. 1-Feb Sell goods on credit to Taylor for £560. 6 Feb He returns £25 of goods. 9-Feb A further £280 of goods is sold to Taylor. 15-Feb […]

Business combination example Background Entity A”s first IFRS financial statements are for a reporting period that ends on 31 December 2013 and include comparative information for 2012 only. On 1 July 2009, Entity A acquired 100 per cent of Entity B. Under its previous GAAP, Entity A: (a) classified the business combination as an acquisition by Entity A; (b) measured the assets acquired and liabilities […]