Genie Ltd is in the process of preparing its financial statements for the year ended 30 June 2020. Explain how Genie Ltd needs to account for the following items, and advise which periods require adjustment as a result:

 i) A change in an accounting estimate during the year ended 30 June 2020 - relating to the measurement of the 'Allowance for doubtful debts'; and

 ii) The correction of a material prior period error - relating to an item of equipment that was purchased on 1 July 2018. The equipment was incorrectly recorded as an expense (repairs and maintenance), instead of being recognised as an asset.

The Conceptual Framework for Financial Reporting lists six qualitative characteristics of useful financial information. List, and briefly discuss any four of these qualitative characteristics.

Explain the role of professional judgement in the preparation of financial statements. Give an example

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