Advise abu enterprise on the recognition of ace

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Reference no: EM132919228

In Abu Enterprise's Statement of Financial Position for the year ended 31 December 2011, there are three financial assets, identified as follows:

             R M

ACE    25,000

BEE     15,000

CEE     10,000

In the course of their audit, the auditors have determined that the rights to the cash flows of ACE have expired. However, the entity still has the rights to receive cash flows from BEE and CEE and it has not transferred any part of the rights nor has it incurred any obligation to deliver cash from these assets.

Required:

Problem 1: Advise Abu Enterprise on the recognition of ACE, BEE and CEE on its Statement of Financial Position for the year ended 31 December 2011.

Reference no: EM132919228

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