ACCOUNTING AND FINANCIAL REPORTING.

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Answer to question 2:......................................................................................................................2
Sub part a:....................................................................................................................................2
Sub Part b:....................................................................................................................................3
Answer to question 3:......................................................................................................................4
Sub part a:....................................................................................................................................4
Sub part b:....................................................................................................................................5
Sub part c:....................................................................................................................................6
References and bibliography:..........................................................................................................7

2ACCOUNTING AND FINANCIAL REPORTING
Answer to question 2:
Sub part a:
AASB 9 serves the rules and guidelines of revaluing and restating financial liabilities in
the books of accounts (AASB 2015). As per the standards an entity’s financial liabilities needs to
be revalued based on the fair value of such liabilities and restated in the books of accounts in that
value. Following the requirements of AASB9, fair value of debentures of Kruger Ltd Can be
computed as follows.

3ACCOUNTING AND FINANCIAL REPORTING
Sub Part b:
Based on the fair value computation in sub part (a), journal entries for issue of debenture
and payment of interests can be made as follows.

4ACCOUNTING AND FINANCIAL REPORTING
Answer to question 3:
Sub part a:
IFRS 15 is applicable for revenue recognition of construction companies (Tong 2014).
Based on the applicable rules and guidelines of IFRS 15, gross profit to be recognized in the
books of Sun City Limited based on reliable estimates of expected costs can be computed as
under.

5ACCOUNTING AND FINANCIAL REPORTING
Sub part b:
Based on the percentage of completion method when expected costs to complete the
construction can reliably be assessed following journal entries can be passed in the books of Sun
City Limited for the year 2015.

6ACCOUNTING AND FINANCIAL REPORTING
Sub part c:
When the expected costs to complete the project is not assessable reliably, following
journal entry could be passed in the books of Sun City Limited for the year 2015.

7ACCOUNTING AND FINANCIAL REPORTING
References and bibliography:
AASB, C.A.S., 2014. Financial Instruments. Project Summary.
AASB, C.A.S., 2015. Investment property.
Khamis, A.M., 2016. Perception of Preparers and Auditors on New Revenue Recognition
Standard (IFRS 15): Evidence From Egypt. Jurnal Dinamika Akuntansi dan Bisnis, 3(2), pp.1-
18.
Tong, T.L., 2014. A Review of IFRS 15 Revenue From Contracts With Customers. Çevrimiçi)
http://www. masb. org/my/images/2014-09-15% 20Review% 20of%-20IFRS, 20.