User Account

All Pages

Explain the correct accounting treatment

Assignment Help Accounting Basics
Reference no: EM133015079

Problem - Koala Ltd has, as a result of its ongoing operations, contaminated the land on which it operates The company determined that it would cost approximately $6 million to clean up the land. There are no legal requirements to clean up the land. However, the company has publicly released policy statements stating that it takes its environmental responsibilities very seriously. The directors decided not to recognise a provision for the estimated clean-up cost.

1. Explain the correct accounting treatment by referring to AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

2. Identify ONE relevant qualitative characteristic of ?nancial information that is violated in the case and brie?y explain why.

Reference no: EM133015079

Questions Cloud

What are the benefits and cost of decentralization : What are the benefits and cost of decentralization? How does the concept of TransferPricing relate to decentralized organization
Explain the purposes and benefits of a mentoring program : Identify legislation and organisational policies relevant to mentoring, including confidentiality and privacy requirements - Explain the purposes and benefits
What is the definition of an intangible asset : The Freshers stores were closed to allow for staff training on the brand amounted to R1650000. What is the definition of an intangible asset
Battling over bottled water : Assess this case from the perspective of the utilitarian, libertarian, and Rawlsian theories of justice. How would each address the case?
Explain the correct accounting treatment : Explain the correct accounting treatment by referring to AASB 137 Provisions, Contingent Liabilities and Contingent Assets
What was the revenue in June from these sales : A bed manufacturer took orders for 22 beds in May, each worth $2500. Of these 22 beds: What was the revenue in June from these sales
At what volume of output two alternatives yield same profit : Annual fixed costs would be $36,000 for A and $31,000 for B; At what volume of output would the two alternatives yield the same profit (or loss)
What are the February purchases : Florida Co. has projected sales to be P60,000 in January, P75,000 in February, and P80,000 in March. What are the February purchases
What your personal retirement strategy will be going forward : How much do you need to save to reach a savings goal of $10,000 in 5 years if it is invested at 2% interest? (assume you have $0 in savings at this time)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd