Answer all the questions (15 marks) Question 1 Briefly explain the standard IAS10 (3 marks) Question 2 Bull Rough Tyres (Pty) Ltd prepared the financial statement for the year end of December 2021. It is still in the process of submission to the shareholders. You are a Chief Financial Officer of the company. Mr. Modipe is the Financial Director who brought the following events to your knowledge after prepared the financial statement. You are expected to deal with the following events. (i). The company has given the following dates for you decide the end of the period. 29 Jan 2022 - Drafted the financial statements for the year ended 31 December 2021. 4 February 2022 Board approved the financial statement to issue 15 February2022 Board announced the profit for the year 18 March 2022 Financial Statements made available to shareholders 25 March 2022 Shareholders approved by shareholders. Which of the above date marks end of the period covered by IAS10? (2 marks) (ii). You learn of the bankruptcy of a customer that occurs after the year end. You need to.. (a) Ignore it (b) Leave the Financial statement but note the details. (c ) Adjust the financial statement. (2 marks) (iii) There is receipt of information, after the year end indicating that an asset was impaired at the year end. You need to (a) Ignore it (b) Leave the Financial statement but note the details. (c ) Adjust the financial statement. (2 marks) (iv) There was a major acquisition between the year end and the date when financial statements are approved for the issue. You need to (a) Ignore it (b) Leave the Financial statement but note the details. (c ) Adjust the financial statement. (2 marks) (v) There is settlement of a court case that confirms that the undertaking had a present obligation after the year end. You need to (a) Ignore it (b) Leave the Financial statement but note the details. (c ) Adjust the financial statement. (2 marks) (vi) You learn of a decline in market value of investments between the year end and the date when the financial statement are approved for issue. You need to (a) Ignore it (b) Leave the Financial statement but note the details. (c ) Adjust the financial statement.

FINANCIAL ACCOUNTING