In $2005$ waste from Flash Limited destroyed a section of Fletcher$$s Land. Members of the community demonstrated and the company restored the land at a cost of $$525,000.$

 In $2006$ the same section of Fletcher$$s Land was destroyed. The Fletcher$$s Land Citizens Association submitted an estimate for $$680,000$ to restore the land. Flash Limited is refusing to pay indicating that Slow Limited, the other company in the community should pay $50\%$ of the restoration costs. In $2005$ Slow Limited refused to pay any of the restoration costs. Flash Limited year end is December $312006.$  

 

Indicate the accounting treatment and the disclosure in the financial statements of Flash Limited. Support your answer with the relevant IFRS.

Answer rating: 100% (QA)

Answer The accounting treatment and disclosure in the financial statements of Flash Limited would de... View the full answer