During 20x6, a catering company served spoiled food to a wedding reception. As a result of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
During 20x6, a catering company served spoiled food to a wedding reception. As a result of this, several people became violently ill. These have contacted a lawyer and are collectively suing the catering company for S1,600,000 (total). You are the catering company's accountant and are in the process of preparing the financial statements for the ended December 31, 20x6. year Legal counsel has provided you with the following Probability 30% Payout SO 200,000 25% 60,000 1,600,000 25% 20% Required- Estimate the provision that needs to be accrued, if any. Use the following table to analyze the situation. Assume that the catering company is IFRS compliant. Present obligation as a result of a past event Probable outflow Measurable? Conclusion During 20x6, a catering company served spoiled food to a wedding reception. As a result of this, several people became violently ill. These have contacted a lawyer and are collectively suing the catering company for S1,600,000 (total). You are the catering company's accountant and are in the process of preparing the financial statements for the ended December 31, 20x6. year Legal counsel has provided you with the following Probability 30% Payout SO 200,000 25% 60,000 1,600,000 25% 20% Required- Estimate the provision that needs to be accrued, if any. Use the following table to analyze the situation. Assume that the catering company is IFRS compliant. Present obligation as a result of a past event Probable outflow Measurable? Conclusion
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula....
-
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification method. Instructions...
-
A hospital has provided you with the following budget information for april: Cash collections 876,000 April 1 cash balance 23,000 Cash disbursements 978,600 The hospital has a policy of maintaining a...
-
A gaseous hydrocarbon (containing C and H atoms) in a container of volume 20.2 L at 350 K and 6.63 atm reacts with an excess of oxygen to form 205.1 g of CO2 and 168.0 g of H2 O. What is the...
-
What are the types of vertebrae, and how many of each are there?
-
Determine the deflection at B of the bar in Prob. 82. The bar is supported by a roller constraint at B, which allows vertical displacement but resists axial load and moment. If the bar is subjected...
-
A European recession and the U.S. economy a. In 2014, European Union spending on U.S. goods accounted for \(18 \%\) of U.S. exports (see Table 17-2), and U.S. exports amounted to \(15 \%\) of U.S....
-
Rocky Mountain Corporation makes two types of hiking bootsXactive and the Pathbreaker. Data concerning these two product lines appear below: The company has a traditional costing system in which...
-
Assume that Twigs has hired you as a database consultant to develop it's operational database having the three tables described at the end of Chapter 6. Assume that Twigs personnel are the owner, an...
-
Auditor Changes at Daily Journal Corporation Charlie Munger is vice chairman of Berkshire Hathaway Inc. and is informally known as War- ren Buffett's "right arm." Munger also serves as chairman of...
-
With his arms out, figure skater Elvis Stojko spins with an angular velocity of 3 0 rads / s . After pulling his arms in he begins spinning at 6 0 rads / s . If it took him 1 . 2 seconds to pull his...
-
A wheel of diameter 40 cm starts from rest and attains a speed of 240 rpm in 4 minutes. Calculate its angular dis- placement in this time interval.
-
Directions: After reading Juliet's Soliloquy Act 4.3, answer the following questions. 1. First, summarize Friar Lawrence's exact plan for Juliet. (5-7 sentences) 2. List four or five of Juliet's...
-
1. Why is the focal length of a concave lens negative? 2. Why does the refractive index (n) of a material have no units Explain.
-
Consider a social network where people are represented as vertices and friendships as edges. If there are 1 0 people in the network and each person is friends with 3 others, calculate the total...
-
2. In the U.S. one still encounters electronic equipment retailers who quote consumer financing in the following manner: Term of the financing is two years; The interest rate is 6%; a. b. C. For...
-
Banana Corporation had the following shares outstanding as of their balance sheet date September 3 0 , 2 0 2 2 : Preferred stock ( 6 % , $ 7 5 par ) 1 , 0 0 0 , 0 0 0 shares; Common stock ( $ 1 par )...
-
Explain the circumstances that could result in a long-term bank loan being shown in a statement of financial position as a current liability.
-
Refer to the Frost Valley Expansion Data Set. Assume that the expansion has zero residual value. Forest Valley Expansion Data Set Assume that Frost Valley's managers developed the following estimates...
-
Main Street Muffins sells its muffins to restaurants and coffee houses for an average selling price of $25 per case. The following information relates to the budget for Main Street Muffins for this...
-
McKnight Ceramics, a division of Piper Corporation, has an operating income of $63,000 and total assets of $420,000. The required rate of return for the company is 9%. The company is evaluating...
-
Show that the quantum-mechanical partition function of a system of \(N\) interacting particles approaches the classical form \[Q_{N}(V, T)=\frac{1}{N ! h^{3 N}} \int e^{-\beta E(\boldsymbol{q},...
-
Show that the entropy of an ideal gas in thermal equilibrium is given by the formula \[ S=k \sum_{\varepsilon}\left[\left\langle n_{\varepsilon}+1ightangle \ln \left\langle...
-
Show that the root-mean-square deviation in the molecular energy \(\varepsilon\), in a system obeying Maxwell-Boltzmann distribution, is \(\sqrt{ }(2 / 3)\) times the mean molecular energy...
Analytical And Approximate Methods In Transport Phenomena 1st Edition - ISBN: 036745288X - Free Book
Study smarter with the SolutionInn App