Do marion action comply with the requirement of ias

Assignment Help Business Law and Ethics

Reference no: EM131342141 , Length: word count:850

Ethics and Governance

MICHELLE MEDEIROS DA SILVA

Pringles ltd is large department store that has used the straight linedepreciation method since the company was first formed. For the year ended 30 June 2015. The company madea record profitand management expected these high profits to continue at least into 2016 and 2017,althoughts economist were generally predicting an economic slowdown and a subsequent fall in profits in 2018 in 2019.

The general manager, Peter Pringle, approached the accountant, Marion Mason and asked her" if she could find a way to reduce the profit next couple of years and transfer it to 2018 and 2019 when things may not being going so well. This would give us consistent profits over the next five years and keep our shareholders happy". Said Peter

Although Marion did not feel that peter reason for the change was justified, she was just 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 for 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.

Question

Do Marion's action comply with the requirement of IAS 16/AASB 116?

Maximum words 850 words in total Answer + Conclusion.

Reference no: EM131342141

Questions Cloud

Type of waste leaves : Suppose you bring 100 pounds of groceries into your home each week. Please estimate how many pounds of each type of waste leaves your home. Does this add up to 100 pounds? Where do the various forms end up?

Capital investment and ethical behavior : Manny Carson, certified management accountant and controller of Wakeman Enterprises, had been given permission to acquire a new computer and software for the company's accounting system.

Explain the term social disorganization : Write a Three-Page Review (300-400 words). Your review may include all aspects of the learning objectives or some partial selected areas of the learning objectives below.Outline the contributions of the Chicago School to the study of crime.

Discuss how the article addresses the health topic : Discuss how the article addresses the health topic - Identify a health topic in the news from a reputable news source

Do marion action comply with the requirement of ias : Pringles ltd is large department store that has used the straight linedepreciation method since the company was first formed. For the year ended 30 June 2015. Do Marion's action comply with the requirement of IAS 16/AASB 116

What is the effective cost of borrowing in this case : Your firm has an average collection period of 41 days. Current practice is to factor all receivables immediately at a 3 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

Estimate the after-tax annual cash flow for the project : Suppose a project will increase revenues by $300,000 a year. Cost of goods sold averages 40% of revenues. Other overhead operating costs will increase by $12,000 due to the project. Depreciation for the new project will be $30,000 annually. The firm ..

Apparent required return for share of preferred stock : What is trend analysis and what information can it tell you about an organization that looking at the $$ s on the financial statements alone cannot provide? Your response should be in your own words. What is the apparent required return for a share o..

Perform ratio analysis using the tools : Perform a ratio analysis (ROE analysis) using the tools and techniques given in Chapter 12 of the textbook. Specifically, you are to perform analysis of the following ratios: ROE, ROA, Equity Multiplier, Profit Margin, Asset Utilization, Net Interest..

User Account

All Pages