EXAMRiskisexaminedinseveralwayswithintheAdvancedAuditandAssurancesyllabusandunderstandingthedifferencebetweenthesecanbekeytoscoringgoodmarksintheexam.Quiteoften,riskformspartofa nningquestionbutitisalsoexaminedwithrespecttoelsewhereintheAswithmanyareasoftheexam,goodexamtechniquecanbeusedtoincreasethemarksattainedwithouthavingtorotelearnmuchadditionalHOWTOAPPLYTHEKNOWLEDGEWhendescribingRoMMs,aneffectiveapproachistousethefollowingstepstoconstructyouranswertherelevantfinancialreportingrequirement–notethatnocreditisawardedfortheaccountingstandardnamesornumbers,onlytheaccountingtreatment.RelatetheriskinIllustratethe

totheaccountingftheriskonthe

SeveralcandidatesappearoftheIAS2IAS2Inventory.Inventoryshouldbevaluedatthelower and.AAA應(yīng)用場景：存貨同比增加or案例信息-【2015/12】Allofthe ’smanufacturingsiteswillbeclosedattheyearendtoallowtheinventorycountstotake ce.Accordingtothemostrecentmanagementaccountswhichareavailable,at30November isvaluedat$12million(2014–$9·5million)andthemajorityoftheseorderswillnotbecompleteuntilaftertheyearend.Inrecentweeksseveralcustomers equipmentdue,andDaliCooffersawarrantytoguaranteethatdefectiveitemswillbere ofcharge.AnswerSeveralcustomershavereturnedequipmentduetoInventoryshouldbevaluedatthelowerofcostandNRV.Foritemswhichhavebeenreturned,thereisariskthattheNRVfallsbelowthecosts.Thiswouldresultin andoverstatementofTheGroupisinvolvedinretail.ThedraftconsolidatedstatementoffinancialpositionshowsthatThelevelofinventoryhasincreasedsignificantly,byIAS2statesinventoryshouldberecognisedatthelowerofcostandnetrealisablevalue.Thereisanauditriskthatinventoryisoverstatedifanynecessarywritedowntonetrealisablevalueisnotrecognised.Thiswouldresult ndoverstatedIAS10EventsAftertheReportingPeriodAcondition

isaneventwhichisindicativeoftheendofthereportingperiod,whichshouldbedisclosediftheyareTherequireddisclosureincludesthenatureoftheeventandanestimateofitsfinancialeffectorastatementthatareasonableestimateoftheeffectcannotbemade.&處置子公司Exhibit5–PotentialnewyearTheGroupis nningtheacquisitionofanewforeignsubsidiary,MichonneCo,whichislocatedinFarland.Thenegotiationsareatanadvancedstage,anditislikelythattheacquisitionwilltake ceinAnswer

Upto3marksforeachauditPostyear-endacquisitionofMichonneTheacquisitionofMichonneCo nnedto .Itistherefore.

hichis isaneventwhichisindicativeofa theendofthereportingperiod,andwhichshouldbedisclosediftheyarematerial.Therequireddisclosureincludesthenatureoftheeventandanestimateofitsfinancialeffectorastatementthatareasonableestimateoftheeffectcannotbemade.iThereisthereforeanauditriskthatthe nrelationtotheacquisitionofMichonneCoisiIAS12IAS12 eTaxesDeferredtaxshouldberecognisedinrespectoftemporarydifferenceswhicharisebetweenthecarryingamountandtaxbaseofassetsandliabilities.Adeferredtaxassetisrecognizedforanunusedtaxlosscarry-forwardif,andonlyif,itisconsidered therewillbesufficientfuturetaxableprofitagainstwhichthelosscarry-forwardcanbeutilised.2015/12&2013/06Thefinancedirectormendedthatthe’smanufacturingsitesshouldbe .AnexternalvaluationwasperformedinJune2015,resultinginmillionbeingrecognisedinequity.Thefinancedirectorhasinformedtheauditcommitteethattobeprovidedinrespectofthevaluationbecausethepropertyispartofcontinuingoperationsandthereisno nforDeferredtaxshouldberecognisedinrespectoftemporarydifferenceswhicharisebetweenthecarryingamountandtaxbaseofassetsandliabilities.Therevaluationsurplusofnon-currentassetsresultsinataxabletemporarydifferencesThefinancedirector’ssuggestionthatdeferredtaxshouldnotbeprovidedforisthereforeincorrect,and2016/06Thedeferredtaxassetisinrespectofunusedtaxlossesscredits)whichaccumulatedwhenTorontoCowamakingforaperiodofthreeyearsfrom2009to2012.sAnswerAdeferredtaxassetisrecognizedforanunusedtaxlossforwardif,andonlyif,itisconsideredthattherewillbesufficientfuturetaxableprofitagainstwhichthelosscarry-canbeThereisariskthatifitisnolongerrecoverable,thentheamountwouldneedtobewrittenoff.oThiswouldresultin foIAS16Property, ntandEquipmentModernisationcostswhichgiverisetoenhancedfutureeconomicbenefitshouldbecapitalised, costswhichdonotcreatefutureeconomicbenefitshouldbeexpensed.Eachpartofanitemofproperty, nt,andequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemmustbeThischangeinaccountingestimateispermitted,buttheauditteamshouldbescepticalandcarefullyconsiderwhetherthechangeis2018/12【2016/06】【2018/12】BusinessdevelopmentsintheyearSunseekerCruisesInthisfinancialyear,theGroupwillspend$75millionftheSunseekerCruiseTheseluxuryshipshavetoadheretoaveryhighstandard,sotheGroupregularlyincurshighexpenditureontheirmaintenance.Aswellasrefurbishment,severalshipshavebeenenhancedbytheinstallationofnewentertainmentfacilitiesincludingcinemasandgyms.EquipmentinthegymswillneedtobenaverageeverythreeAnswerUpgradeandmaintenanceTheGroupincurshighcostsinrelationtoupgradeandmaintenanceofitsfleetofships.FortheSunseekerships,$75millionisbeingspentthisyear.Thereisanauditrisk.,Upgradecosts,includingcostsrelatingtonewfacilitiessuchas shouldbecapitalised,butmaintenancecostsshouldbeexpensed..,,Thereisarisk ,,operatingexpenseshavebeen ,ComponentEachpartofanitemofproperty, nt,andequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemmustbeThereisariskthatshipsforthepurposeofdeterminingtheindividualcost,usefullife,andresidualvalueofeachpart.Forexample,ifsignificant,thegymequipmentshouldbedepreciatedover yfromotherssuchasshipexterior,engine,etc.Thereisanauditriskthatdepreciationisnotcorrectlyonthiscomponentbasis,meaning theircouldc【2017/06】TheGroup’s istorecogniseassetscostlessdepreciation.Duringtheyear,concludedthat

ofassets’estimatedandasaresult,theprojecteddepreciationchargefortheyearis$5millionlessthanthecomparativefigure.Answer of ntequipmenthasincreasedprofitby$5Thischangeinaccountingestimateispermitted,buttheauditteamshouldbescepticalandcarefullyconsiderwhetherthechangeisjustified.ThereisariskthatthechangemightbeThiswouldresultinanoverstatementofprofit($5million)andanoverstatementofasset($5million).IAS20Accountingfor ernmentGrantsandDisclosureof ernmentAssistance ernmentgrantsshouldberecognisedinprofitorlossonasystematicbasisovertheperiods,inwhichtheentityrecognisestherelatedcostsforwhichthegrantsareintendedtocompensateTheamountrelatingtocapitalexpenditureshouldbe

ontherelatedassetsisThegrantrelatingtopromotional

Example:accountingforgrantsrelatedtoassets receivesa20%granttowardsthecostofanewitemofmachinery,which$100,000.Themachineryhasanexpectedlifeoffouryearsandanilresidualvalue.Theexpectedprofitsofthe ,beforeaccountingfordepreciationonthenewmachineorthegrant,amountto$50,000perannumineachyearofthemachinery'slife.DrDrCrCashDrCrCrDeferredDrCrAccmulated

DrCrAccmulated

DrDeferredeCrOthere

Example:accountingforgrantsrelatedto AccountingtreatmentGrantsrelatingto eareshowninprofitorloss yoraspartof'othere'fromtherelatedexpense.DrCrDeferredDrDeferredCrOthere/

alternativelyyearending30SeptemberAninternationaldevelopmentagencyhasagreedtoprovideagrant$20milliontoassistPaleCoinitsFarlandexpansion,on theexpansionrepresentssustainableandethicalbusinesspractice.Thegrantisprovided.ThegrantisduetobereceivedinSeptember20X5and.expenditure

MarkYorknningreceivedaseinthisfinancialstatements,onthebasisthatit"willcoversomeofmanagement'sexpensesin nningtheinternationalexpansion".Answer ernmentgrantsshouldberecognisedinprofitorlossonasystematicbasisovertheperiods,inwhichtheentityrecognisestherelatedcostsforwhichthegrantsareintendedtocompensateMarkYorkis nningtorecognise aseinthisyear,asit"willcoversomeofmanagement'sexpensesin nningtheinternationalexpansion".Thisisinappropriateasthegrantisprovidedfortrainingthelocal,. andbuilding,.theentireamountofthegrantshouldTherefore,thereisarisk yearending28FebruaryRedbackSportsCoisalsoinvolvedwitha ernmentinitiativetohelpunemployedpeoplehaveaccesstosportfacilities.The,receivedagrantof inSeptember20X8,underthetermsofwhichitallowsunemployedpeoplethreehoursof accesstoitsfacilitiespermonth.BytheendofNovember,33,900 hoursoffacilityusehavebeenprovidedunderthisscheme.The intendstheinitiativetorun topromotelong-termhealthofparticipants.,AnswerThe ernmentgrantsshouldberecognisedinprofitorlossonsystematicbasisovertheperiods,inwhichtheentityrecognisestherelatedcostsforwhichthegrantsareintendedtocompensateRedbackSportsCohasrecognisedallthe ethisyear,however,theschemeisintendedtorunforthreeyears.Thereforethereisariskthatthe hasrecognisedthe etooearlyandaproportionofitshouldremainasdeferred Therefore,thereisariskthat and ernmentfinancialyearending30September ernmentprovidesgrantstoorganisationswhich toinvestinginpropertiestoreducecarbonemissionsandenergyconsumption.Grantsarealsoavailabletoorganisationstopromotethebenefitsofrecyclingtotheircustomers.InJanuary20X5,RyderCoreceivedagrantof$20million.Theattachedtothegrantisthathalfoftheamountmustbeusedtoupgradeexistingassetstomakethemmoreenvironmentallyfriendly.,butitis nnedthatitwillbeusedtofinancecapitalexpenditureacrosstheGroup’spropertyportfolio.Theotherhalfofthegrantwillbeusedtofundan ,AccordingtotheGroupfinancedirector,thefull$20millionis operatingprofitintheprojectedGroupstatementofprofitorlossfortheyear(Exhibit(ExhibitAnswerernment ernmentgrantsshouldberecognisedinprofitorlossonasystematicbasisovertheperiods,inwhichtheentityrecognisestherelatedcostsforwhichthegrantsareintendedtocompensateThetwopartsofthegrantshouldbeaccountedfor Theamountrelatingtocapitalexpenditureshouldbedeferredandassumingthatthegrantwillbeusedtoupgradeitemsofproperty, ntandequipment,thegrantshouldthenberecognisedinprofitorlossovertheperiodsinwhichdepreciationexpenseontherelatedassetsisrecognised.Thepartofthegrantrelatingtopromotionalactivityshouldberecognisedinprofitorlossinthesameperiodastherelevantexpenses–dependingonwhentheexpensesrelatingtotheadvertising nareincurred.【題中Thereforetheauditriskisamountof$20million,

bya bythesameamountIAS21TheEffectsofChangesinForeignExchangeRatesTransactionsshouldbeinitiallyrecordedusingthespotrate,andmonetaryitemssuchastradepayablesshouldberetranslatedattheyearendusingtheusingthehangerate.Theassetsandliabilitiesshouldberetranslatedusingtheclosingexc seandexpensesshouldberetranslatedattheexchangehangerate.Exchangegainsandlosses gasExchangegainsandlossesarerecognizedothercomprehensive$$Purchases-129,000@attheyearProfitorloss-exchange$$Payablesasat31.12.X8(129,000 PayablesaspreviouslyExchangeOpeningnetXExchangeOpening＄XProfit/(loss)fortheClosingnetXClosingXfinancialyearInMarch20X8,thelocatedin

n80%controllingshareholdinginLynxCo,aforconsiderationof$351million.adeterminationofthegoodwillarisingonthisacquisitionisshowninExhibit4.TheassetsandliabilitiesofLynxCoshouldberetranslatedusingtheclosingexchangerate.Itseandexpensesshouldberetranslatedattheexchangeratesatthedatesofthetransactions.TheriskisthatincorrectexchangeratesareusedfortheThiscouldresultin oftheassets,liabilities,eandexpenseswhichareconsolidated,includinggoodwill.Itwouldalsomeanthatthe Exchangegainsandlossesarisingasaresultoftheretranslationofthesubsidiary’sbalancesarerecognizedinothercomprehensivee.Theriskis,forexample,thegainorlosscouldberecognisedincorrectlyaspartofprofitfortheyear.Net10=Net10=Finance4PVofFVofnassetNetCurrentservice-Benefit--Netinterest4ldbetakenareiseduetodifferencesldbetakenareiseduetodifferencesand occurredduringtheperiod.【給大家一段SBR--AnswerTheremeasurementcomponentshouldbetakendifferencesbetweenoccurredduringtheperiod.Theriskremeasurementcomponentprofitfortheyear.

areduetoandwhat,forexample,,erecognisedincorrectly【看案例中是否明確說明做在了profitorlossIAS23IAS23BorrowingCosts isanassetthattakesatogetreadyforitsintendeduseorsale.Borrowingcostswhichare totheacquisition,constructionorproductionofaqualifyingassetshouldbecapitalised.TheExplorerCruiseships,whilestillluxurious,arethe shipsinthefleet,andtheGroupisgraduallyre cingthesewithnewships.Duringthisfinancialyear,twonewshipswithatotalcostof$110millionwillcomeintouse.Theshipstookthreeyearstobuild,andwereconstructedbyVelaShipbuildersCo.Thepurchaseoftheshipswasfinancedthrougha$110millionloanwithafixedinterestrateof6%perAnswer-BorrowingAqualifyingassetasanassetthattakesa getreadyforitsintendeduseorsale.TheshipsbeingconstructedfallunderthedefinitionofaIAS23requiresthatborrowingcostswhichare otheacquisition,constructionorproductionofaqualifyingassetshouldbeTheauditriskisthatinterestcostshavenotbeenappropria capitalisedandinsteadhavebeentreatedasfinancecosts,whichwouldforthefIAS24RelatedPartyDisclosureswherea hascontrolorjointcontrol,significantinfluence,orisamemberofthekey nelofthereportingentities.Wheretherehavebeentransactionsbetweenrelatedparties,thereshouldbedisclosureofthenatureoftherelatedpartyrelationshipaswellasinformationaboutthetransactionsandoutstandingbalancesnecessary【披露的細節(jié)這句現(xiàn)在一定RelatedpartyThesaleofthedesignsbyMartintoGruber arelatedpartyArelatedpartyisa whohascontrolorjointcontroloverthereportingentity,thereforeMartinarelatedpartyofGruberCoandthesaleofhisdesignsisarelatedpartytransaction.oThereisariskthat fthetransactionis accordancewithIAS24whichrequiresthatiftherehavebeentransactionsbetweenrelatedparties,thereshouldbedisclosureregardingthenatureoftherelatedpartyrelationshipaswellasinformationaboutthetransactionsandoutstandingbalanceswherenecessary.o,TheExplorerCruiseships,whilestillluxurious,arethe inthefleet,andtheGroupisgraduallyre cingthesewithnewships.Theshipstookthreeyearstobuild,andwereconstructedbyVelaShipbuildersCo,a whichisnotownedbytheGroup.However,thechairmanoftheGroup, isalsothechairmanofVelaShipbuildersCo,andhissonisthe chiefexecutiveofficer.,AnswerArelatedpartyrelationshipexistswherea hascontrolorjointcontrol,significantinfluence,orisamemberofthet hatVelaShipbuildersCoisarelatedpartyoftheGroup.ThisisbecauseMaxDracoisthechairmanofboththeGroupandVelaShipbuildersCo.ThefactthatMaxDraco’ssonisthechiefexecutiveofficerofVelaShipbuildersCotIAS24requiresthatwheretherehavebeentransactionsbetweenrelatedparties,thereshouldbedisclosureofthenatureoftherelatedpartyrelationshipaswellasinformationaboutthetransactionsandoutstandingbalancesnecessaryforanunderstandingofthepotentialeffectoftherelationshiponthefinancialstatements.ThereisanauditriskthatGroup’spurchasesofshipsfromVelaShipbuildersCotheGroupfinancialstatements.

regardingIAS33IAS33EarningsperShareEPSshallbecalculatedbasedontheprofitaftertaxattributabletoThedenominatorshouldbebasedontheweightedaveragenumberofshareswhichwereinissueduringthefinancialy/e31MayAspartofafive-yearstrategic n,TedCoobtainedastockmarketlistinginDecember2014.Asalisted ,TedCoisrequiredtodiscloseitsearningspersharefigure.DougalDoylewouldlikethistobebasedonanadjustedearningsfigurewhichdoesnotincludedepreciationoramortisationexpenses.Note:EarningspersharehasbeencalculatedasProfitbeforetaxAdd:DepreciationAdjustedprofitbeforetaxAdjustedprofit Numberofequity

16,850,000=89·6centsperAnswerAnswerEPS–incorrectlyEPSshallbecalculatedbasedontheprofitaftertaxattributableButinthedraftfinancialstatementsithasbeenincorrectlycalculatedbasedonanadjustedprofitbeforetaxThedenominatorshouldbebasedontheweightedaveragenumberofshareswhichwereinissueduringthefinancialyearThecalculationshowsthatitisbasedonthenumberofsharesinissueattheyearend,whichisincorrectduetotheshareissueinDecember2014.IAS36IAS36ImpairmentGoodwillshouldbetestedannuallyforimpairmentregardlesswhetherindicatorsofpotentialimpairmentManagementshouldconductanimpairmentreviewtodeterminetherecoverableamountoftheXXandifthisislessthanthecarryingamount,recogniseanimpairmentlossaccordingly.Therecoverableamountisthehigherofvalueinuseandfairvaluelesscoststoselltheasset.Thecashflowprojectionstodeterminethevalueinuseshouldbebasedon–expenditurestoimproveorenhancetheasset’sperformanceshouldnotbeanticipated.Inordertovisitcertaindestinationsonthesespecialistcruises,theGrouphastoacquireoperatinglicencesfromthelocalernments.Thecostoflicenceacquisitioniscapitalisedasanintangibleasset. ernmentsofseveralcountrieswhichformamajorpartofthePioneerCruise immediateeffect.The ernmentshavestatedthatthisislikelytobeatemporarymeasurebeingputin cetolimitthenumberoftouristsvisitingareasofnaturalbeauty,buttheywillnotconfirmwhentheGroupcanresumeoperationsinthesecountries.AnswerOperatingManagementshouldconductanimpairmentreviewtodeterminetherecoverableamountofthelicencesandifthisislessthanthecarryingamount,recogniseanimpairmentlossaccordingly.oAnauditriskarisesduetothe fsomeoralloftheselicences,whicharisesfromthe ernmentshavingwithdrawnthelicensesinsomecountrieswheretheGroupoperatestheirPioneercruises.oIfthisdoesnot ce, arelikelytoOn1January2015,ZCGpurchasedalicencetooperateinFarland,arapidlyexpandingeconomy,atacostof$65million.Thelicencelastsfor10yearsfromthedatethatitwaspurchased.Sincepurchasingthelicence,ZCGhasestablisheditsnetworkcoverageinFarlandandthenetworkbecameoperationalon1July2016.ThelicencewasrecognisedasanintangibleassetatcostintheGroupstatementoffinancialpositionat31December2015.Sincethenetworkbecameoperational,customerdemandhasbeenlessthananticipatedduetoacompetitorofferingaspecialdealtoitsexistingcustomerstoencouragethemnottochangeproviders.GoodwillarisingonbusinesscombinationsistestedannuallyforimpairmentinaccordancewithIAS36ImpairmentofAssets.DuetothestrongperformanceoftheGroup,noimpairmentofgoodwillhasbeenrecognizedinrecentyears.IssueidentifiedbyNeeganAtlanta&CoauditsallofthesubsidiarieswiththeexceptionofDarylCo,oneoftheGroup’sforeignsubsidiaries,whichisauditedbyalocalfirmcalledNeeganAssociatestInternetservicesinthecountryhavebeensubjecttoconsiderabledisruption.Asaresultofthis,asignificantnumberofcustomershavecancelledtheirsubscriptionsand isprojectedtomakea hisyeartAnswerDarylCo–possibleGoodwillshouldbetestedannuallyforimpairmentregardlessofwhetherindicatorsofpotentialimpairmentexist.【評分標準：為什么不寫這句，為什么AstheGroup’sperformanceinthepasthasbeenstrong,nogoodwillimpairmenthasbeenrecognised.TheauditstrategypreparedbyNeeganAssociatesindicatesthatDarylCoislossmakingthisyear,whichisan managementwillneedtofactorthisintotheirimpairmentreview..,Thereisanauditrisk could ,,ifanynecessaryimpairmentlossisnotcorrectlydetermined,【2018/09】GoodwillrelatestotheGroup’ssubsidiaries,andistestedforimpairmentonanannualbasis.ManagementwillconducttheannualimpairmentreviewinDecember20X8,butitisanticipatedthatnoimpairmentwillneedtoberecognisedthisyearduetoanticipatedgrowthinrevenuewhichisforecastforthenexttwoyears.Thecarryingamountof$6·15millionincludes$880,250relatingtothestorm-damagedfactory(referredtoinExhibit2)anditsfixturesandfittings.Thefactoryisacash-generatingunitforthepurposeofimpairmenttesting.Thefinancedirectorhasprovidedasummarycalculation,detailingthefollowingimpairmentreviewwhichindicatesthatanimpairmentlossof$210,250needstoberecognised:$Carryingamountat31AugustRecoverableHigherof:FairvaluelesscoststoValueinImpairmentloss(880,250–iThefairvaluelesscoststosellhasbeenestimatedbasedonthesalesproceedswhichcouldbegeneratedfromsellingthedamagedmachinery.i

sestimatedbasedonthefuturesaleswhichcouldbethedamagetothebuildingisrepairedandnewmachineryisputintotheAnswerImpairedThedamagetothefactoryhastriggeredanimpairmentreview.Therecoverableamountisthehigherofvalueinuseandfairvaluelesscoststoselltheasset.Thecashflowprojectionstodeterminethevalueinuseshouldbebasedon–expenditurestoimproveorenhancetheasset’sperformanceshouldnotbeanticipated.stHowever,thefinancedirector’sestimateofvalueinuseisstiIThedetermination iI,.likelythatthevalueinuseismuchlowerthanthefinancedirector’sestimate$670,000,meaningthattheimpairmentlosstoberecognisedisgreaterthanthe$210,250,.eThereforethereisariskthatththecarryingvalueofthee

IAS37Provisions,ContingentLiabilitiesandContingentAssets shouldberecognisedasaliabilityifthereisapresentobligationasaresultofpasteventswhichgivesrisetoaprobableoutflowofeconomicbenefitwhichcanbereliablymeasured.Ifthereisapossibleobligation,then ofthecontingentliabilityshouldbemadeinthenotestothefinancialstatements.Assumingthatthesecriteriahavebeenmet,itwouldbereasonabletoexpectthetobeprovided.【這句是偶爾考的細節(jié)，結(jié)合案AnswerLegal

Alegalcase,whichamountsto$19million,wasbroughtagainsttheGroup.MarkYorkdoesnotintendtorecogniseaprovisionfortheclaimormakeanydisclosureAprovisionshouldberecognisedasaliabilityifthereisapresentobligationasaresultofpasteventswhichgivesrisetoaprobableoutflowofeconomicbenefitwhichcanbereliablymeasured.Thereisthereforeanauditriskthatifanynecessaryprovisionisnotrecognised,Ifthereisapossibleobligation,thendisclosureofthecontingentliabilityshouldbemadeinthenotestothefinancialstatements.ThereisariskofiftheGroupfinancedirectorrefusestomakeappropriatedisclosureinthenotes.Inrecentweeksseveralcustomershavereturnedequipmentduetofaults,andDaliCooffersa toguaranteethatdefectiveitemswillberecedofcharge.AnswerDaliCo cesfaulty ofAprovisionshouldberecognisedwhereareliableestimatecanbemadeinrelationtoaprobableoutflowofeconomicresourcesandanobligatingeventhas Theriskisthatnoprovisionoraninsufficientprovisioninrelationtothewarrantyhasbeenrecognised,leadingtounderstatedliabilitiesandoperatingexpenses.Costofsalesincludes$250,000relatingtoaprovisionforapotentialfinepayable.TheadvertisingregulatoryauthorityhasissuedanoticeofafinepayablebyParkerCoduetoallegedinappropriateclaimsmadeinanadvertising n.ThefineisbeingdisputedandthemattershouldberesolvedinAugust2013.AnswerAprovisionshouldberecognisedwhereareliableestimatecanbemadeinrelationtoaprobableoutflowofeconomicresourcesandanobligatingeventhastaken Assumingthatthesecriteriahavebeenmet,itwouldbereasonabletoexpect tobeprovided.$450,000istheamountofthepotentialamountpayable,butonly$250,000hasbeenprovided.Thereisariskthattheprovisionmaynotbemeasuredcorrectly.Thiswouldresultinanoverstatementofprofitandanby$200,000-Storm-damaged,. nningoncarryingouttherestorationandbuyingnewmachinery,atatotalestimatedcostof$450,000.Thisamount,.forwithinaccountedforasaAnswer

withacorrespondingThefinancialstatementsincludeaprovision$450,000forrepairingthefactoryandbuyingnewmachinerywithacorrespondingentryaccountedforasa shouldberecognisedasaliabilityifthereisapresentobligationasaresultofpasteventswhichgivesrisetoaprobableoutflowofeconomicbenefitwhichcanbereliablymeasured.Inthiscasetheredoesnotseemtobeapresentobligation,the notcontractuallyobligedtorepairthedamageandthereisnoevidencethataconstructiveobligationexists.Therefore,theprovisionandrelatedprepaymentshouldnotberecognised,IAS38IAS38IntangibleAssetResearchcostsshouldbeexpensed,anddevelopmentcostsshouldonlybecapitalizedifcertaincriteriaaremetincludingthatthetechnicalandcommercialfeasibilityoftheassethasbeenestablished.Advertisingcostsmustnotberecognisedasintangibleassetsandmustbeexpensed.Thecostofanintangibleassetwithafiniteusefullifeshouldbeamortisedonasystematicbasisoveritslife.indefiniteusefullife不用攤銷，但每年要做減值測試2014/12ResearchandRecently,concernoverthelevelof sticusedinpackaginghasencouragedfoodproducerstoinvestigatetheuseof packagingfortheirproducts.InJuly20X8,theboardapprovedabudgetof$400,000tobespentonresearchanddevelopmentintonewpackagingforitsproducts.By28February20X9,$220,000hasbeenspent,withthisamountbeingpaidtoProPack,afirmofpackagingspecialists,todesignanddeveloparangeof bottles,bagsandcontainers.Itisanticipatedthatthepackagingwillbereadyforuseintwoyears’timeatwhichpointthe willintroduceitforuseacrossitsproductrange.ProPackiscurrentlytestingprototypesofitemswhichhavebeendeveloped,withencouragingresults.1.Intangibleassetsincludesthefollowing

Softwaredevelopment relatingto‘FructusGold’ Developmentcostsinrespectofnew Softwaredevelopmentcostsof$30,000werecapitalisedduringtheyear,whichrelatetodevelopmentoftheonlinesalesportal.Thefinancedirectorsuggeststhatboththesoftwaredevelopmentcostsandtheadvertisingcostsshouldbecapitalisedbecausetheincreasedsalesintheyearareadirectresultoftheadvertising nandi