Hampton Housing Ltd (HHL) is a land development company trading in the construction of residential house and

Question:

Hampton Housing Ltd (HHL) is a land development company trading in the construction of residential house and land packages in Sydney’s western suburbs. The company is currently developing a residential subdivision, and the total cost of the development has been estimated at $18 000 000. This is related to future house and land packages, none of which is yet available for sale. HHL treated these costs as an asset.

By 30 June 2020, HHL had sold 40 house and land packages in a different subdivision for the financial year. The total value of these packages is $15 000 000. The funds have not been received by HHL because it was arranged that payments would be received from various finance companies by the end of July 2020. HHL recognised the revenue in its income statement for the year ended 30 June 2020.

Required

Discuss HHL’s treatment of the development costs of $18 000 000 and the packages sold for $15 000 000. Are these treatments consistent with the Conceptual Framework and accounting standards? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 0% (1 review)

Answered By

Mustafa olang

Please accept my enthusiastic application to solutionInn. I would love the opportunity to be a hardworking, passionate member of your tutoring program. As soon as I read the description of the program, I knew I was a well-qualified candidate for the position. I have extensive tutoring experience in a variety of fields. I have tutored in English as well as Calculus. I have helped students learn to analyze literature, write essays, understand historical events, and graph parabolas. Your program requires that tutors be able to assist students in multiple subjects, and my experience would allow me to do just that. You also state in your job posting that you require tutors that can work with students of all ages. As a summer camp counselor, I have experience working with preschool and kindergarten-age students. I have also tutored middle school students in reading, as well as college and high school students. Through these tutoring and counseling positions, I have learned how to best teach each age group. For example, I created songs to teach my three-year-old campers the camp rules, but I gave my college student daily quizzes to help her prepare for exams. I am passionate about helping students improve in all academic subjects. I still remember my excitement when my calculus student received her first “A” on a quiz! I am confident that my passion and experience are the qualities you are looking for at solutionInn. Thank you so much for your time and consideration.

4.80+ 2+ Reviews 10+ Question Solved

Related Book For answer-question