Reference no: EM131193925 , Length: 2000 Words
Pringles Ltd is a large department store that has used the straight-line depreciation method since the company was first formed. For the year ended 30 June 2015, the company made a record profit and management expected these high profits to continue at least into 2016 and 2017, although economists were generally predicting an economic slowdown and a subsequent fall in profits in 2018 and 2019. The general manager, Peter Pringle, approached the accountant, Marion Mason, and asked her if she could find a way to reduce the profit in the next couple of years and transfer it to 2018 and 2019 when things may not be going so well. 'This would give us consistent profits over the next few years and keep our shareholders happy,' said Peter. Although Marion did not feel that Peter's reason for the change was justified, she was concerned that her contract with the company would not be renewed if she upset the general manager. After some consideration, Marion decided to change the depreciation method from the straight-line method to the sum-of-years'-digits method. Marion did not disclose this change in the notes to the financial statements as she felt that the reason given by Peter would not give a good impression.
Required
A. Who are the stakeholders in this situation?
B. What ethical issues, if any, arise in this situation?
C. How does the change in accounting methods by Marion meet the objectives set out by Peter?
D. Do Marion's actions comply with the requirements of IAS 16/AASB 116?
E. Discuss the nature of depreciation in IAS 16/AASB 116. Outline alternative views considered for the accounting treatment of depreciation in the text book and discuss the rationale for the treatment adopted in the standard.
What is a derivative used for in math
: What is a derivative used for in Math and please explain why it was developed?
|
Calculate the potential difference between the two hoops
: The two hoops are kept parallel to each other and rotate at 600 rpm in a constant magnetic field as shown in Figure 10.41. Calculate the potential difference between the two hoops.
|
Why the strategy is appropriate for health care
: A detailed 200-word description of the strategy and why the strategy is appropriate for health care, Create a graphic image identifying the different components of the selection process. Examples of a graphic image are flowcharts, Venn diagrams, g..
|
Compute the companys cash budget for february in good form
: Prepare the company's cash budget for February in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.
|
Pringles ltd who are the stakeholders in this situation
: Who are the stakeholders in this situation. What ethical issues, if any, arise in this situation. How does the change in accounting methods by Marion meet the objectives set out by Peter Do Marion's actions comply with the requirements of IAS 16/AASB..
|
Ordered pairs of positive integers
: Let A be the set of all ordered pairs of positive integers and R be the relation defined on A where (a, b) R (c, d) means that b - a = d - c. Then [(2, 4)] = ?
|
Compute a cash-basis income statement
: Using the transaction data above, prepare a cash-basis income statement and an accrual-basis income statement for the month of January.
|
How did your study strategies change as you progressed
: Reflect back on your time in this course. How did your study strategies change as you progressed in the class? What were the most successful study strategies that you used? What advice might you give a fellow student who is just beginning this cou..
|
Calculate the induced emf between the terminals a and b
: The frequency of rotation is f (rotations per second). Calculate the induced emf between the terminals a and b. Show the polarity of the induced voltage.
|