FAR270 DEC19 MFRS108 PDF

Preview

Summary

Download FAR270 DEC19 MFRS108 PDF

Description

NAME : AZRA AZYYATI BINTI ANIS STUDENT ID NO. : 2019264608 GROUP : AC1104A

FAR270 DEC19 MFRS108

QUESTION 3 A. a. Retrospective application means applying a new accounting policy as if that policy had always been applied./-by making adjustment to the opening balance of retained profits When an entity applies the change retrospectively the entity must adjust the opening balance of each affected component of equity for the earliest prior period presented and the other comparative amounts disclosed for each prior period must be presented as if the new accounting policy had always been applied. b. Prospective application means : applying the new policy to the financial statements of the current and future periods  applying the new accounting estimate to transactions or events occurring after the date the estimate is changed; and  recognising the effect of the change in the current and future periods affected by the change but not recognising the effect in comparative information presented for any earlier period.

B. a. 1. Current year error/ 2. Prior year error/ 3. Change in accounting estimate/ b. 1. Adjusted prospectively/ 2. Adjusted retrospectively/ 3. Adjusted prospectively/

c. 1. Dr. Machine at cost/ Dr. Sopl-Depreciation/ [(RM251,000/10 x 6/12) – RM12,500] Cr. Revenue expenditurex sopl-transportation cost Cr. Accumulated depreciation/ 2. Dr. Retained earnings/-sales overcharged RM30,000/ Cr. Account receivable/ 3. Dr. Depreciation/ Cr. Accumulated depreciation/ Calculation : Cost as at 1 July 2015 Less : Accumulated depreciation 2016 (RM400,000/10) RM40,000 2017 RM40,000 2018 RM40,000 Carrying amount 30 June 2018

RM1,000/ RM50// RM1,000/ RM50

RM30,000/

RM140,000// RM140,000

RM400,000

(RM120,000) RM280,000

Depreciation for year ended 30 June 2019 : RM280,000/(5-3) = RM140,000

d. Restated retained earnings as at 1 July 2018

Balance as at 1 July 2018 Overstated account receivable Restated retained earnings

RM 2,500,000/ (30,000) Dr/ 2,470,000/...