Chapter 5, Problem 7ICA

You are required to obtain the annual reports of two ASX Top 200 companies in the sameindustry and write a business research report to address the following questions related to theitems 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 ofthe 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 thefinancial statements?• Compare the measures used by the different companies for similar items. Are there anyinconsistencies in how similar items are measured by the different companies?2. Discuss the factors that accountants should consider when setting up company accountingpolicy relating to PPE.3. Detail your view on the subsequent measurement of PPE and provide recommendations toaccounting standard setters.

Answer the following subquestion as a result of an audit:  a. How much is the correct carrying value of the notes payable as of December 31, 2023? b. How much is the correct interest expense that Meekah should recognized in the December 31, 2023 statement of comprehensive income? c. How much of the note is reported in the non-current liability section of the December 31, 2023 statement of financial position?

The fieldwork for the December 31, 2018 audit of Schmidt Corporation ended on March 17, 2019. The financialstatements and auditor's report were issued on March 29, 2019. In each of the material situations (1 through 5)below, indicate the appropriate action (a, b, c). The possible actions are as followsa. Adjust the December 31, 2018 financial statements.b. Disclose the information in a footnote in the December 31, 2018 financial statements.c. No action is required.The situations are as follows:________ 1. On March 1, 2019, one of Schmidt Corporation's major customers declared bankruptcy. The customer'sfinancial condition in 2018 was deteriorating and they owed Schmidt Corporation a large sum of money as of thebalance sheet date.________ 2. On February 17, 2019, Schmidt Corporation sold some machinery for its book value.________ 3. On February 20, 2019 a flood destroyed the entire uninsured inventory in one of Schmidt'swarehouses.________ 4. On January 5, 2019, there was a significant…