The following provision has been included in the financial statements of Thriving (Pty) Ltd as at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following provision has been included in the financial statements of Thriving (Pty) Ltd as at 31 December 2023: • Provision for expected future operating losses REQUIRED: Discuss how the provision should be accounted for in the annual financial statements of Thriving (Pty) Ltd so as to comply with IAS 37 of the International Financial Reporting Standards. In the following financial year, 2023, actual costs paid amount to: R100 000 PART B: During 2022, Enviroserve (Pty) Ltd is involved in litigation relating to environmental damages and is being sued for damages amounting to R800 000. Legal costs are estimated to amount to R40 000. The definition and recognition criteria of a provision are met. • • Legal costs Environmental damage repair costs (3 marks) R 820 000 R 40 000 REQUIRED: Prepare all the necessary general journal entries to account for the environmental damage and legal costs in the 2022 and 2023 financial statements of Enviroserve (Pty) Ltd. Journal dates and narrations are not required. The following provision has been included in the financial statements of Thriving (Pty) Ltd as at 31 December 2023: • Provision for expected future operating losses REQUIRED: Discuss how the provision should be accounted for in the annual financial statements of Thriving (Pty) Ltd so as to comply with IAS 37 of the International Financial Reporting Standards. In the following financial year, 2023, actual costs paid amount to: R100 000 PART B: During 2022, Enviroserve (Pty) Ltd is involved in litigation relating to environmental damages and is being sued for damages amounting to R800 000. Legal costs are estimated to amount to R40 000. The definition and recognition criteria of a provision are met. • • Legal costs Environmental damage repair costs (3 marks) R 820 000 R 40 000 REQUIRED: Prepare all the necessary general journal entries to account for the environmental damage and legal costs in the 2022 and 2023 financial statements of Enviroserve (Pty) Ltd. Journal dates and narrations are not required.
Expert Answer:
Answer rating: 100% (QA)
Part A Provision for Expected Future Operating Losses To account for the provision for expected future operating losses in accordance with IAS 37 Prov... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
4. [2 pts] Jeremy feeling sick today. He has fever, cough, and phlegm and wants to see Dr. Laker. Dr. Laker has lots of experiences to examine patients who are suffering from cold, flu,
-
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
-
The statements of financial position of CC Ltd and its two subsidiaries DD Ltd and EE Ltd as at 31 December 2017 are as follows: The following information is available: (a) CC Ltd acquired 60% of the...
-
In an attempt to identify ecologically friendly methods for controlling mosquito populations, researchers conducted eld experiments in India where aquatic nymphs of the dragony Brachytron pretense...
-
A crossing guard holds a STOP sign at arms length, as shown in FIGURE 11-63. Her arm is horizontal, and we assume that the deltoid muscle is the only muscle supporting her arm. The weight of her...
-
Luxguard Home Paint Company produces exterior latex paint, which it sells in one-gallon containers. The company has two processing departmentsBase Fab and Finishing. White paint, which is used as a...
-
\(\frac{13}{36}-\frac{14}{99}\) Perform the indicated operations. Reduce to lowest terms.
-
Tyrene Products manufactures recreational equipment. One of the companys products, a skateboard, sells for $37.50. The skateboards are manufactured in an antiquated plant that relies heavily on...
-
1) You buy a house worth $350,000 with 20% down payment and a 30-year mortgage on the remaining value. If your monthly payment is $1,500, what is the annual percentage rate (APR) for the mortgage? a....
-
Sharpe Cutter is a small company that produces specialty knives for paper cutting machinery. The annual demand for a particular type of knife is 100,000 units. The demand is uniform over the 250...
-
Pamela McLennan, the chief financial officer in Glaxo Kent Ltd. (GKL), is responsible for the company's project evaluation. One of the projects under consideration is the company's expansion project,...
-
Why do you believe that the programs you have created will be successful in increasing the health and safety skill set of this organization?
-
Three charged particles are at the corners of an equilateral triangle as shown in the figure below (q = 3.00 C, L = 0.400 m). 7.00 C 60.0 2 L -4.00 C (a) Calculate the electric field at the position...
-
What is meant by the term "risk mitigation" in finance? 2. What are some common strategies for mitigating risk in investment portfolios? 3. How can diversification help investors reduce risk? 4. What...
-
Below are some examples of culture clashes between international businesses. They each have had numerous business cases written about them and ultimately either failed to work things out or failed in...
-
What are some of the criticisms of hedge funds, and how have regulators responded to these criticisms in recent years? 12. What are some of the potential future trends or developments in the hedge...
-
Equipment was purchased for $150,000. Freight charges amounted to $7,000 and
-
A survey of 70 college freshmen asked whether students planned to take biology, chemistry, or physics during their first year. Use the diagram to answer each question. How many of the surveyed...
-
Jardine Matheson Group (Part 1) With its broad portfolio of market-leading businesses, the Jardine Matheson Group is an Asian-based conglomerate with extensive experience in the region. Its business...
-
The following Statement of Added Value (in millions of Brazilian reals) was presented in the 2009 annual report of Vale S.A., a Brazilian mineral products company: Required: a. Identify the external...
-
In what way does the fair value model for investment property differ from the revaluation model for property, plant, and equipment?
-
2. Josephine Rutyna was a 60-year-old widow who suffered from high blood pressure and epilepsy. A bill collector from Collections Accounts Terminal, Inc., called her and demanded that she pay $56 she...
-
3. Thomas Pinner worked at a Sherwin-Williams paint store that was managed by James Schmidt. Pinner and Schmidt had a falling out when, according to Pinner, "a relationship began to bloom between...
-
5. Take the following quiz to see how smart you are about buying on credit: a. What's the best way to correct a mistake on your credit card bill? i. Call your credit card issuer immediately and...
Study smarter with the SolutionInn App