How events should accounted for in the financial statements

Assignment Help Accounting Basics
Reference no: EM132765841

Alberto is a company that manufactures and sells mobile phones and mobile phone contracts. It prepares its financial statements under International Financial Reporting Standards and has a year end of 30th April 2018.

Alberto launched a promotion during the year to attract new customers to its network. Under this promotion, customers sign a non-cancellable contract to subscribe to the Alberto network for twelve months. The cost is $30 per month, payable at the end of each month. This price includes a new handset and network access.

The normal retail price of these elements is as follows:

$

Handset                                  250
Network access (per month)           15

In total, 100,000 new customers signed up for this promotion. The contracts all began on 1st March 2018.

REQUIRED:

Problem 1: Discuss how the above events should be accounted for in the financial statements of Alberto for the year ended 30th April 2018.

Reference no: EM132765841

Questions Cloud

Advise the directors of poncho on their various requests : Advise the directors of Poncho on their various requests. Poncho, a public limited company, has entered into several share related transactions
Explain the types of speciation : Explain the types of speciation?
Sequence of proteins between two different species : Why might a biologist be interested in comparing the amino acid sequence of proteins between two different species? What differences
What is meant by significant influence : Explain what is meant by 'significant influence'. The standard defines an associate as an entity over which an investor has 'significant influence'.
How events should accounted for in the financial statements : Discuss how the above events should be accounted for in the financial statements of Alberto for the year ended 30th April 2018.
Describe and explain the four features of chordates : Describe and explain the four features of chordates
Discuss recent developments in the area of sustainability : Discuss recent developments in the area of sustainability reporting and the potential benefits that might arise when an entity discloses its impact
Explain systematics-taxonomy and phylogeny : Explain Systematics, taxonomy, and phylogeny?
Should the impairment loss be recognised in the records : When goodwill is impaired in later years, should the impairment loss be recognised in the records of Brown Ltd or as a consolidation adjustment?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What lends the claims credibility

What work means to you and which companies you would like to work for. Do you agree with Gallo? Why or why not? What lends his claims credibility?

  Identify four organisational constraints should take

State the eight step procedure usually used in the complaint-handling process. Identify four organisational constraints you should take into account

  Discuss internal controls contributed to the scandal

Choose one accounting scandal that precipitated this legislation and discuss whether or not internal controls (or lack thereof) contributed to the scandal

  Identify the items listed above that are assets what is the

national shops inc. reported the following amounts on its balance sheet on december 31 2009cash300000accounts

  Prepare the entry for the issuance under the assumptions

Prepare the entry for the issuance under the assumptions - The stock had a par value of $5 per share and was issued for land worth $52,000

  What is the due date for the deposit of these taxes

Vulcan Company is a monthly depositor whose tax liability for March 20-- is $2,505. What is the due date for the deposit of these taxes

  Calculate the restated cash dividend per share

Calculate the restated cash dividend per share for 2009 reported in the 2011 annual report for comparative purposes. Round your answer to two decimal places.

  What the corporation times interest earned was closest to

Net income of $200,000, income tax expense of $74,000, and interest expense of $20,000. The corporation's times interest earned was closest to

  For its year ended december 31 2012 cupressa corporation an

1. which of the following is not a capital asset?a. inventoryb. stocksc. a personal automobiled. golde. land2. for 2012

  How do discuss amazon approach

Product marketing depends on the five elements (product, place, promotion, price, profit). Discuss Amazon.com's approach to each and how this contributes

  Calculate Machine A and Machine B probability index

BAK Corp. is considering purchasing one of two new diagnostic machines. Calculate Machine A and Machine B's NPV and probability index

  If common computer service costs r allocated using computer

If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd