February 2021 is the financial year-end of Yellowwood Ltd. The company has promised the financial analysts and
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Question:
February 2021 is the financial year-end of Yellowwood Ltd. The company has promised the financial analysts and traders, earnings per share (EPS) growth of 12.5%. In January 2021 management discontinue a product line, which resulted in possible obsolete stock to the value of R2.5m. If management provide the full provision for obsolete stock, the earnings per share target of 12.5% will not be met. Management decided not to raise any provision to ensure the earnings per share target of 12.5% is achieved.
Required:
1. Identify assets, liabilities, income, expenses which are overstated or understated.
Related Book For
Ethical Obligations And Decision Making In Accounting Text And Cases
ISBN: 9781264135943
6th Edition
Authors: Steven Mintz
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