Accounting and Financial Reporting

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
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Name of the University:
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1ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Answer to Question 1:.....................................................................................................................2
Answer to Question 2:.....................................................................................................................7
Answer to Question 3:.....................................................................................................................9
Part i:............................................................................................................................................9
Part ii:.........................................................................................................................................10
Answer to Question 4:...................................................................................................................11
Answer to Question 5:...................................................................................................................13
References:....................................................................................................................................17

2ACCOUNTING AND FINANCIAL REPORTING
Answer to Question 1:
Serial Number Situation Accounting
Treatment
Financial
Statements to
be adjusted
Note disclosure/Journal
entry
1 Accounting
estimate change
It is evident
from the
“Paragraph 36 of
AASB 108” that
modification in
accounting
projection has to
be realised in the
profit and loss
statement from
the change date
(Aasb.gov.au,
2019).
Financial reports
of the year 2017-
2018 as well as
other future
financials
Dr. Warranty Expense
$15,000
Cr. Provision for Warranty
$15,400
(Warranty expense record)
2 After reporting
period events-
File of
bankruptcy after
the date of
AASB 110
clearly states
that events are of
two types, which
include adjusting
Financial reports
of the year 2017-
2018
Dr Bad Debt Expense
$380,000
Cr. Allowance for Bad Debt
$380,000

3ACCOUNTING AND FINANCIAL REPORTING
reporting as well
as non-
recoverability of
receivables
as well as non-
adjusting events
(Aasb.gov.au,
2019). Adjusting
events could be
classified as
those events,
where there is
evidence of
happening
present on the
date of
reporting. The
current case is
observed to have
association with
adjusting event,
which mandates
the requirement
for recording the
same (Flower,
2018).
(Recording allowance for
bad debt)
3 After reporting AASB 110 No need for any In compliance with