Concept explainers
(a)
International Financial Reporting Standards (IFRS): The International Accounting Standards Board develops the International Financial Reporting Standards (IFRS). It provides a set of globally-accepted accounting guidelines for the preparation and presentation of the financial statements of a public company.
To Explain: The format of income statement used by Company LV.
(b)
The term used by Company LV for interest cost instead of “interest expense”.
(c) (1)
Notes to the financial statements consist of all additional information in connection with financial statement can be identified in the notes to the financial statements. Notes to the financial statement are one of the main requirements of an annual report. It helps to clarify the information presented in the financial statements.
To Determine: The Composition of the inventory of Company LV (Refer Appendix F).
(2)
The amount of inventory (gross) before impairment of Company LV for the year 2014.
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Financial Accounting: Tools for Business Decision Making, 8th Edition
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