The following are facts that occurred in 2022 regarding Fruity Fruit Inc: 1) FRUITY FRUIT INC...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are facts that occurred in 2022 regarding Fruity Fruit Inc: 1) FRUITY FRUIT INC changed the method of providing for impairment of receivables by using the expected loss approach in accordance with IFRS 9, previously FRUITY FRUIT INC provided a provision for 2% of the balance of overdue receivables as of the reporting date. 2) FRUITY FRUIT INC changed the method of measurement of investment property from the cost model to the fair value model. 3) Based on the review of the output pattern of its production machines, FRUITY FRUIT INC changed the depreciation method to classify production machine assets from the straight-line method to the declining balance method. 4) FRUITY FRUIT INC (as lessee/lessee) so far has not capitalized office vehicle leases, after the enactment of IFRS 16, office vehicle leases are capitalized. Required: Explain how the accounting treatment of the four facts mentioned above The following are facts that occurred in 2022 regarding Fruity Fruit Inc: 1) FRUITY FRUIT INC changed the method of providing for impairment of receivables by using the expected loss approach in accordance with IFRS 9, previously FRUITY FRUIT INC provided a provision for 2% of the balance of overdue receivables as of the reporting date. 2) FRUITY FRUIT INC changed the method of measurement of investment property from the cost model to the fair value model. 3) Based on the review of the output pattern of its production machines, FRUITY FRUIT INC changed the depreciation method to classify production machine assets from the straight-line method to the declining balance method. 4) FRUITY FRUIT INC (as lessee/lessee) so far has not capitalized office vehicle leases, after the enactment of IFRS 16, office vehicle leases are capitalized. Required: Explain how the accounting treatment of the four facts mentioned above
Expert Answer:
Answer rating: 100% (QA)
ANSWER 1 The change in accounting treatment for impairment of receivables means that FRUITY FRUIT IN... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Explain the effect of uncouplers on the electron transport chain and oxidative phosphorylation. Give two names as examples of these substances.
-
Explain the effect of an exemption clause included in a contract which is inconsistent with the terms set out in the Sale of Goods Act.
-
Uncouplers of oxidative phosphorylation in mitochondria also uncouple photoelectron transport and ATP synthesis in chloroplasts. Give an explanation for this observation.
-
The mass of the crane?s boom is 9000 kg. Its weight acts at?G. The sum of the moments about?P?due to the boom?s weight, the force exerted at?B?by the cable?AB,?and the force exerted at?C?by the...
-
Explain why the investigation of white-collar crimes is often a low priority for law enforcement agencies.
-
Determine the horizontal and vertical components of force that pins A and C exert on the frame. Units Used: kN = 103 N Given: F1 = 1kN F2 = 500 N = 45 deg a = 0.2 m b = 0.2 m c = 0.4 m d = 0.4 m F2
-
The trial balance for TDR Systems, Inc., at July 15, 2010, follows: During the remainder of July, TDR Systems, Inc., completed the following transactions: Requirements 1. Journalize the transactions...
-
One-pound coffee cans are filled by a machine, sealed, and then weighed by a local coffee store. After adjusting for the weight of the can, any package that weighs less than 16 oz is cut out of the...
-
How did greece restructure debt and reforms with better terms in order to get their country out of debt? How did this benefit them?
-
WorldCom revealed that in addition to the US$3.8bn in expenses improperly recorded as capital, an internal audit discovered that US$3.3bn in profits were improperly recorded on its books from 1999 to...
-
Q#6: Calculate the taxable income and net tax payable of Mr. Imran Rana for the tax year 2019. (10) Basic Salary 80000 pm Bonus. 400000 pa Special pay 25000 pm Conveyance allowance 15000 pm Free...
-
Analyse the impact of individual differences in statistical numeracy on consumer decision-making, using recent examples from thebusiness sector. Discuss the resulting implications and suggest...
-
Analyze the impact of the COVID-19 pandemic on Heineken's supply chain and recommend strategies to mitigate its effects.
-
Provide an analysis of the impact of innovation on the growth and competitive advantage of an organization. In your analysis, do the following: Describe the organization you chose and explain how...
-
Summarize: The challenge of sustainability will impact the hospital health care setting significantly. Hospitals are high energy consumers due to their 24/7 operation. To become sustainable, they...
-
A diver of mass 6 5 kg takes off from the 1 0 m platform from a standing position by jumping upwards with a ( near ) vertical speed of 2 . 0 ms - 1 . a ) Calculate i ) the time taken to reach the...
-
Suppose an apple (mass 200 g) sits at the edge of a cliff with height h. The apple then tips over the edge and hits the ground with a speed of 21 m/s. How tall is the cliff? Express your answer with...
-
A line l passes through the points with coordinates (0, 5) and (6, 7). a. Find the gradient of the line. b. Find an equation of the line in the form ax + by + c = 0.
-
The mean free path \(\lambda\) of a molecule of gas is the average distance it travels before collision with another molecule. It is given by \[\lambda=C \frac{m}{ho d^{2}}\] where \(m\) and \(d\)...
-
A rectangular gate (width \(w=2 \mathrm{~m}\) ) is hinged as shown, with a stop on the lower edge. At what depth \(H\) will the gate tip? Water H 0.55 m 0.45 m P3.46 Hinge Stop
-
Gates in the Poe Lock at Sault Ste. Marie, Michigan, close a channel \(W=34 \mathrm{~m}\) wide, \(L=360 \mathrm{~m}\) long, and \(D=10 \mathrm{~m}\) deep. The geometry of one pair of gates is shown;...
Study smarter with the SolutionInn App