Identify principle that is relevant to accounting policy

Assignment Help Accounting Basics

Reference no: EM132647203

Question - During January 2020, the Fair Work Commission1 commenced an investigation into Defiant Ltd for underpayment of wages. The Fair Work Commission is expected to deliver its decision in October 2020. However, Defiant Ltd's lawyers advised that it was likely that the Company would be required to compensate past and present employees for underpayment of wages. Defiant Ltd's financial accountant estimated that the amount involved was in the range of $8,000,000 to $9,000,000. Of this amount, $1,000,000 relates to past employees. The financial accountant thought there might be some difficulty locating some former employees, and did some modelling to calculate the expected value of the cost of paying former employees to be $700,000. The Chief Executive Officer (CEO) thought the matter should be disclosed in the notes to the financial statements for the year ended 30 June 2020. However, the Chief Financial Officer (CFO) was not convinced and has asked you to do some preliminary work on the accounting problem.

i) Which Accounting Standard is most relevant to the issue?

ii) Identify one principle from that Standard that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle (e.g., AASB XXX, para. zz, or para. z1 and z2) AND explain why you chose that principle.

iii) Identify another principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle.

Reference no: EM132647203

Questions Cloud

Why depreciation must be recorded on the company : Assume that you are the accountant for Computer Consultants. Why depreciation must be recorded on the company's accounting records

How would you handle an ethical conflict : Write a 175- to 265-word response to the following: What is the role of a health care manager when facing an ethical decision? How would you handle an ethical.

The rising importance of big-data computing stems : The rising importance of big-data computing stems from advances in many different technologies.

Discuss the criterion for earning the award : Write a 700-word paper that includes the following: Discuss the criterion for earning the award. Is the criterion sufficient to indicate high organization

Identify principle that is relevant to accounting policy : Identify another principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle

Find effective annual interest rate of loan : You just bought a fancy TV on credit for $5,000 and the terms of the loan are: 3-year loan for with monthly (end of the month)

Discussing a workable plan to improve the emotional skills : Develop a 1,400- to 1,750-word paper discussing a workable plan to improve the emotional skills and competencies of people in one of the team member's place.

Conditions of racial and ethnic minority populations : How is the linkage between poverty and discrimination reflected in the conditions of racial and ethnic minority populations?

Applying the principles of keynesian model : Applying the principles of the Keynesian model, what specific economic policies would you propose to accomplish these goals?

User Account

All Pages