Reference no: EM133306608
1. Discuss the definitions of accounting elements as per the 2018 Conceptual Framework and highlight the differences between the previous definitions. Tutorial on Accounting Elements.
2. The conceptual framework identifies multiple measurement bases and concludes that an entity may employ more than one measurement base in constructing financial reports. Discuss how this can be undertaken by the preparer of reports keeping in mind the objectives of general purpose financial reporting.
3. Discuss whether the following are assets or not and why?
(a) Members of the Australian hockey team
(b) A 9-month lease agreement to rent a business office
(c) Expenditure on research and development
(d) An unsigned, documented contractual agreement to build specialized equipment for a client
(e) A building bequeathed to a firm
(f) A 5-year option to acquire property, where the option was purchased by the company a year ago
(g) Accounts payable
(h) Leases
(i) Inventories
4. The conceptual framework states that 'not all assets and liabilities are necessarily recognized'. Discuss.
5. Discuss proprietary theory and entity theory with respect to:
• Stewardship role
• Equity section and distribution of wealth
6. The company is being sued for injuries sustained by an employee who claimed that the workplace steps he fell down were unsafe. The outcome of the lawsuit is highly uncertain. Measurement Uncertainty: Evaluate this situation: