PPE disclosure
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You are required to obtain the annual reports of two ASX Top 200 companies in the same
industry and write a business research report to address the following questions related to the
items included in property, plant and equipment.
1. Review and evaluate the PPE disclosure of your selected companies which may include:
• What range of measures is used to determine amounts for these items in the reports of
the individual companies?
• Do you think it is valid to add the items, given the measures used?
• How would you interpret the total amount for property, plant and equipment in the
financial statements?
• Compare the measures used by the different companies for similar items. Are there any
inconsistencies in how similar items are measured by the different companies?
2. Discuss the factors that accountants should consider when setting up company accounting
policy relating to PPE.
3. Detail your view on the subsequent measurement of PPE and provide recommendations to
accounting standard setters.
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- Which of the following options would most likely improve the timeliness of your company's financial statements? Question 1 options: decreasing the estimates of useful life of property, plant, and equipment. changing the timing of when revenues are recognized. changing from quarterly financial statements to monthly financial statements. increasing the number of disclosures in the notes to the statement. Fundamental qualitative characteristics include: Question 2 options: representational faithfulness and timeliness. relevance and representational faithfulness. materiality and verifiability. relevance and comparability.Consider the following material and independent situations (i) to (iii) below.In each situation, the following dates apply:• Balance date: 30 June 2021• Date of audit report: 16 August 2021• Audited financial report and audit report sent to shareholders: 23 August 2021• Annual general meeting: 30 September 2021(i) The client purchased raw materials that were received before the financial year end. The purchase was recorded based on its estimated value. The supplier’s invoice, received on 30 July 2021, showed that the cost was substantially different from the estimated value.(ii) On 10 August 2021, the directors signed a contract to upgrade the client’s airconditioning system. The first payment of $100,000 is due on 1 September 2021. Work will be completed by 30 June 2022, and the final contract payment will be made at that time.(iii) On 25 August 2021, the general manager informed you that on 18 August 2021 the directors decided to sell land that the client was holding as a long-term…Please solve all questions. You are the manager responsible for the audit of Kicap Manis Berhad, a listed company, for the year ended 31 December 2019. The main business activity of Kicap Manis Berhad is the manufacture of farm machinery. The audit work has been completed, and you are reviewing the working papers in order to draft a report to those charged with governance. During the audit of property, plant and equipment (PPE), the audit team found no material misstatement but the following issues have come to your attention. It was discovered that authorization had not been gained for the purchase of office equipment with a cost of RM315,000. The officer in charge of the purchase claimed that the management has conveyed their agreement with the purchase in the management team monthly meeting, but the audit team has not been furnished with such minutes of meeting even after numerous requests. The client is using an internally developed PPE system, PropertyCare, to maintain the…
- Recognition is the process of including within the financial statements items which meet the definition of an element according to the IASB’s Conceptual Framework for Financial Reporting. Which of the following items should be recognised as an asset in the statement of financial position of a company? Select one: a. A highly lucrative contract signed during the year which is due to commence shortly after the year end b. A government grant relating to the purchase of an item of plant several years ago which has a remaining life of four years c. A skilled and efficient workforce which has been very expensive to train. Some of these staff are still in the employment of the company d. A receivable from a customer which has been sold (factored) to a finance company. The finance company has full recourse to the company for any lossesIdentify any Two (2) Public Listed Company listed under the Main Market of Bursa Malaysia originating from the same industry. Download the most recent annual report of the companies you have chosen. Analyze and compare the annual reports and critically assess the difficulties in preparing a set of useful financial statements, which exhibits all the primary qualitative characteristics necessary for all users of financial statements( E.g. Comparability ). How well do you feel that your chosen companies have achieved this purpose ? ( Minimum 1200 words )Choose a major publicly traded corporation, then go to the corporation's site and retrieve the information needed for this assignment. Provide information about the history of the corporation and its current product offerings. Provide a screenshot of the corporate’s latest reported income statement. Organize the income statement in an Excel file to enable you to verify the arithmetic in the income statement, and explain your verifications. Also, explain the nature of each item in the income statement. Information for the Hi-Test company’s production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $45,000 of direct materials cost and $56.320 conversion cost). = $101,320 Costs…
- Choose a major publicly traded corporation, then go to the corporation's site and retrieve the information needed for this assignment. Provide information about the history of the corporation and its current product offerings. Provide a screenshot of the corporate’s latest reported income statement. Organize the income statement in an Excel file to enable you to verify the arithmetic in the income statement, and explain your verifications. Also, explain the nature of each item in the income statement. Information for the Hi-Test company’s production process for September follows. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process. Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $45,000 of direct materials cost and $56.320 conversion cost). = $101,320 Costs…Write a short email to the board of directors explaning to them three examples of the judgement exercised when accounting for property, plant, and equipment. Also explain the implications of exercising judgement. Note that not all the directors have an accounting background.FTG & CO. an accounting and auditing firm was engaged by Zest Airlines Philippines to audit the company for reporting year ended December 31, 2020. You were assigned by FTG to plan the audit, and based on your experience of the environment, your team will focus on property, plant, and equipment material risks that might arise. Based on your examination and test of record you traced the following transactions: On January 1, 2020, Zest Airlines contracted with LIPAD Aircraft to construct an aircraft to Zest’s specifications at a cost ofP20,000,000. During 2020, Zest paid LIPADP4,000,000 on January 1, and anotherP2,500,000 on September 30. On the same day, January 1, Zest borrowed P3,600,000 at 13% to partially finance the construction, an obligation still outstanding at the end of 2020. The remaining amount paid to LIPAD was financed from available working capital. Zest has…
- Need an answer for question B (i ii) (b) Obtain the most recent annual reports for TWO FTSE 100 companies of your choice (NOTE: you need to make sure the companies chosen have more than one operational segment and thus have meaningful segment notes for analysis). Examine the segmental disclosures provided in the segment notes of the annual reports by the selected two companies and comment on the following:i. Based on extracts from the segment notes,• how much and what segmental information is provided in the segment notes?• discuss whether the companies are in compliance with the relevant accounting standard, and• discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions Please don't share the answers if possible because it will cause plagiarism. thank you for your support.Need an answer for question B (i ii iii) (b) Obtain the most recent annual reports for TWO FTSE 100 companies of your choice (NOTE: you need to make sure the companies chosen have more than one operational segment and thus have meaningful segment notes for analysis). Examine the segmental disclosures provided in the segment notes of the annual reports by the selected two companies and comment on the following:i. Based on extracts from the segment notes,• how much and what segmental information is provided in the segment notes?• discuss whether the companies are in compliance with the relevant accounting standard, and• discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions iii. Discuss the implications of your analysis and findings, such as policy implications.The financial manager of HULL pLc has recruited you to provide trainings on various accounting standards You are required to: Describe how an assets impairment loss is determined and explain how IAS 36 deals with the recognition and measurement of the impairment of assets with reference to academic literature
