- o X a > Chapter 10 13 - Assignr x + V 0 file:///C:/Users/96279/Downloads/Chapter%2010%20%2013%20-%20Assignment%20WOS.pdf | 3 of 3 lo - + Fit to page Page View A Read aloud Add notes 6 Question Three (3 Marks): You are the CFO of Jordan company. The year-end of Jordan is 31 March. The CEO of Jordan company informed you that the company intends to open a new branch in the next few weeks. The company has spent a substantial sum on a series of television advertisements to promote this new branch. The company paid for advertisements costing JOD 1,500,000 before 31 March 2018. JOD 900,000 of this sum relates to advertisements shown before 31 March 2018 and JOD 350,000 to shown in April 2018. Since 31 March 2018, The company has paid for further advertisements costing JOD 250,000. A discussion between the CEO and the board of directors whether these costs should be written off as expenses in the year to 31 March 2018. The board of Directors doesn't want to charge JOD 3 million. Required: Explain and justify the treatment of these costs of JOD 3 million in the financial statements for the year ended 31 March 2018 according to IAS 38 assuming that market research indicates that this new branch is likely to be highly successful. Activate Windows Go to Settings to activate Windows. 16 Type here to search A O 5:54 PM FENG 54320207 - o X a > Chapter 10 13 - Assignr x + V 0 file:///C:/Users/96279/Downloads/Chapter%2010%20%2013%20-%20Assignment%20WOS.pdf | 3 of 3 lo - + Fit to page Page View A Read aloud Add notes 6 Question Three (3 Marks): You are the CFO of Jordan company. The year-end of Jordan is 31 March. The CEO of Jordan company informed you that the company intends to open a new branch in the next few weeks. The company has spent a substantial sum on a series of television advertisements to promote this new branch. The company paid for advertisements costing JOD 1,500,000 before 31 March 2018. JOD 900,000 of this sum relates to advertisements shown before 31 March 2018 and JOD 350,000 to shown in April 2018. Since 31 March 2018, The company has paid for further advertisements costing JOD 250,000. A discussion between the CEO and the board of directors whether these costs should be written off as expenses in the year to 31 March 2018. The board of Directors doesn't want to charge JOD 3 million. Required: Explain and justify the treatment of these costs of JOD 3 million in the financial statements for the year ended 31 March 2018 according to IAS 38 assuming that market research indicates that this new branch is likely to be highly successful. Activate Windows Go to Settings to activate Windows. 16 Type here to search A O 5:54 PM FENG 54320207