Instructions: explain, for each of the matters identified in Henry's notes (exhibit 1), the appropriate financial reporting
Fantastic news! We've Found the answer you've been seeking!
Question:
Instructions: explain, for each of the matters identified in Henry's notes (exhibit 1), the appropriate financial reporting treatment in AGG's consolidated financial statement for the period ending 31 december 2020. Set out appropriate adjustments
Transcribed Image Text:
3. Antonio Games Group (AGG) is a listed company in the stock exchange. AGG is in the gaming business and it sells games via online platform. The most popular games are Fruit Cutting, Tom the Cat, and Learning Alphabets. The online games can be downloaded by customers via an App and payment can be made through the App. The App is compatible for Apple and Android phones, and it can also be downloaded into laptop via its respective game websites. Customers can also make their payment via the App or online transfer. AGG has two subsidiaries i.e. Tommy Games Pty Ltd (TG) and AlphaGoggle.com Pty Ltd (AG). TG is in the business of marketing the games in Asia and Europe. On the other hand, AG is in the business of developing new technologies to support the increasing needs of gaming industry including incorporating the virtual reality function into online games and the ability to choose multiple virtual personalities in games. AGG and its subsidiaries are located in the UK. The head office of the company is in London while it has offices in Cardiff, Warwick, and Nottingham. You are the senior in charge of this Group audit for the year ended 31 December 2020 and you are working in Alexander & Ryan LLP, a firm of ICAEW Chartered Accountants. Alexander & Ryan LLP is the auditor for AGG and AG while the other subsidiary (i.e. TG) is audited by Sandy & Partners LLP. TG was previously audited by Angelina & Co LLP until the auditor's resignation on 31 December 2019. Henry, the Chief Financial Officer, has made a few notes relating to the current year transactions and handed to Janesther, your audit engagement manager (Exhibit 1). During the final audit, you found a few key issues and have made notes to discuss with Janesther (Exhibit 2). You received an email from Henry in reply for your questions asked during the final audit relating the competency and qualifications of the newly appointed component auditor. You have included the same as discussion note for your meeting with Janesther (Exhibit 3). 3. Antonio Games Group (AGG) is a listed company in the stock exchange. AGG is in the gaming business and it sells games via online platform. The most popular games are Fruit Cutting, Tom the Cat, and Learning Alphabets. The online games can be downloaded by customers via an App and payment can be made through the App. The App is compatible for Apple and Android phones, and it can also be downloaded into laptop via its respective game websites. Customers can also make their payment via the App or online transfer. AGG has two subsidiaries i.e. Tommy Games Pty Ltd (TG) and AlphaGoggle.com Pty Ltd (AG). TG is in the business of marketing the games in Asia and Europe. On the other hand, AG is in the business of developing new technologies to support the increasing needs of gaming industry including incorporating the virtual reality function into online games and the ability to choose multiple virtual personalities in games. AGG and its subsidiaries are located in the UK. The head office of the company is in London while it has offices in Cardiff, Warwick, and Nottingham. You are the senior in charge of this Group audit for the year ended 31 December 2020 and you are working in Alexander & Ryan LLP, a firm of ICAEW Chartered Accountants. Alexander & Ryan LLP is the auditor for AGG and AG while the other subsidiary (i.e. TG) is audited by Sandy & Partners LLP. TG was previously audited by Angelina & Co LLP until the auditor's resignation on 31 December 2019. Henry, the Chief Financial Officer, has made a few notes relating to the current year transactions and handed to Janesther, your audit engagement manager (Exhibit 1). During the final audit, you found a few key issues and have made notes to discuss with Janesther (Exhibit 2). You received an email from Henry in reply for your questions asked during the final audit relating the competency and qualifications of the newly appointed component auditor. You have included the same as discussion note for your meeting with Janesther (Exhibit 3).
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided in Exhibit 1 I will explain the appropriate financial reporting treatment and suggest adjustments for the matters id... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
For each of the following, compute S . a) S is the portion of the surface z = x4 + y2 which lies over the unit square [0, 1] [0,1], with upward-pointing normal, and = x dy dz + y dz dx + z dx dy....
-
Set up T accounts for each of the general ledger accounts needed for Exercise 4-2A and post debits and credits to the accounts. Foot the accounts and enter the balances. Prove that total debits equal...
-
Set up T accounts for each of the general ledger accounts needed for Exercise 4-2B and post debits and credits to the accounts. Foot the accounts and enter the balances. Prove that total debits equal...
-
A politician claims that the mean salary for managers in his state is more than the national mean, $85,000. Assume the the population is normally distributed and the population standard deviation is...
-
When a business fails, most of the assets are claimed by secured creditors. Other creditors receive very little, and the shareholders are left with nothing. Is the protection accorded to secured...
-
High Liner Foods Incorporated processes and markets prepared frozen seafood throughout Canada, the United States, and Mexico under the High Liner and Fisher Boy brands. It also produces private label...
-
Jerome M. Eisenberg is an antiquities dealer and a self-proclaimed expert in classical antiquities with a doctorate in Roman, Egyptian, and Near Eastern art. Maurice E. Hall Jr. is an art dealer who...
-
Determine Cash Balance Presented below is a number of independent situations. For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as...
-
An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's monthly demand for phone calls is Q1 = 2,800 200p (with p measured in cents) and Firm 2's is Q2 =5,000...
-
Alex, Brook, and Charlene each began their own sole proprietorship in a GST province on January 1, 20X4. The following chart summarizes their revenue for the first two years of activity: Additional...
-
O PROBABILITY Emman Permutations and combinations: Problem type 3 A committee consisting of 3 faculty members and 4 students is to be formed. Every committee position has the same duties and voting...
-
This is the total value of all items owned by an individual or family, including tangible and intangible assets. This general term describes a professional who provides financial evaluations and...
-
Z Co manufactures a single product that has a selling price of $140. The variable labor expenses are $38,000 and the material costs are $16,000. The company's fixed expenses are $34,000 per month....
-
"How to Create Strong Brand Positioning in Your Market" by Cult Branding? Explain
-
Your company financial controller wants to be notified whenever the company is exceeding 50 percent of the money distributed for their cloud expenses. Which solution should you use?
-
Would a school and a company that manufactures golf clubs use the same budgeting process? Why or why not? Responses Budgets are individual to each company. Looking at goals, business year, and future...
-
A seed fund makes a $1 mill convertible note investment into a start-up that carries with it the right to convert to equity at a 20% discount to the first priced investment round and a pre-money cap...
-
A new car sold for $31,000. If the vehicle loses 15% of its value each year, how much will it be worth after 10 years?
-
Many businesses are offering their products and services over the Internet. Some of these companies and their Internet addresses are listed below. a. In groups of three, assign each person in your...
-
The debits and credits from two transactions are presented in the following supplier's (creditor's) account: NAME Da Vinci Computer Services Inc. ADDRESS 2199 Technology Avenue Describe each...
-
Grey Company owns a machine with a cost of $320,000 and accumulated depreciation of $60,000 that can be sold for $250,000, less a 5% sales commission. Alternatively, the machine can be leased by Grey...
-
Nina Lopez and Matt ORourke have been trying to raise capital to expand their growing chain of cupcake shops, Treasure Cup. They make a full range of traditional cupcakes, but they found immediate...
-
Wish You Wood is a toy boutique located in the main shopping strip of a resort town near Piney Lake. People who own cabins near the lake or come to visit the local state park enjoy browsing through...
-
Alyssia Franklin is a marketing manager for Or Earth Skin Care. Four years ago, when she was hired to help with promotional campaigns, she was thrilled because she loved Or Earths products. Above all...
Study smarter with the SolutionInn App