Question $4(25$ marks$)$

$4$a$)$ "You've recently been appointed as the accounting assistant at Nathaniel Ltd$,$ and the director seeks

clarification on several accounting concepts. These include:

i$)$ Revenue from Contracts with Customers, ii$)$ Measurement of revenue, and iii$)$ Revenue recognition.

For each term, provide a concise explanation, detailing how revenue is quantified and the criteria

employed for recognizing revenue." $(10$ marks$)$

$4$b$)$ "You serve as the Financial Analyst at Green Ventures, holding a $30\%$ stake in the shares of Blue Horizons.

The provided details are as follows:

i$)$ Blue Horizons achieved a net profit of P$1\mathrm{.}5$ million for the fiscal year ending on March $31$st$.$

ii$)$ Blue Horizons supplied goods to Green Ventures valued at P$2$ million, with half of the goods remaining

unsold.

iii$)$ A margin of $30\%$ is applied to all sales. iv$)$ Green Ventures intends to recognize an impairment charge

of P$35,000.$

Compute the associate's share of profit." $(10$ marks$)$

$4$c$)"$At the start of the fiscal year on January $1$st$,2023,$ Aurora Co$.$ had $3$ million ordinary shares outstanding.

On June $1$st$,2023,$ Aurora Co$.$ announced a $1-$for$-3$ bonus issue. Subsequently, on September $30$th$,2023,$

Aurora Co$.$ issued an additional $1000,000$ shares at the prevailing market price. Aurora Co$.$ recorded a profit of

P$2,000,000$ for the fiscal year ending on December $31$st$,2023,$ attributable to ordinary equity holders.

Compute the basic earnings per share for the fiscal year ended December $31$st$,2023,$ following the

guidelines of IAS $33$ Earnings Per Share." $(5$ marks$)$ Subject financial reporting