Reference no: EM133522263

QUESTION 1: You are the Chief Finance Officer (CFO) of John Ltd. and have prepared the financial reports for one of your clients, Rusty Ltd. Sarah is the Managing Director (MD) of Rusty Ltd, and she has limited accounting knowledge. Sarah does not understand why you have revalued land upwards and buildings downward. You are having a meeting with Sarah next week to clarify some of the questions she has about the revaluations of non-current assets undertaken within the current financial statements.

Required:

At the meeting, you need to explain to Sarah (in laymen's terms) why one class of asset can be revalued upward while another class of asset can be revalued downward within the same financial period.

QUESTION 2

You are the accountant at Sandy Ltd. and have provided the financial statements for the year ending 30 June 2023 for circulation at the next board meeting. You have been informed that one of the board directors, Annie, has questioned the impairment of goodwill recorded within the financial statements. Annie has limited accounting knowledge and does not understand why you would impair goodwill.

Required:

At the upcoming board meeting, you will explain (in laymen's terms):

How the amount of goodwill is identified, and

Why goodwill may be impaired.

QUESTION 3

You are the senior accountant at Jamie Ltd. and submitted the financial reports for the year ending 30 June 2023 to Yuki, the Chief Executive Officer (CEO). Yuki has limited accounting knowledge and does not understand how you reconciled the profit before tax and taxable income figures.

Required:

Explain to Yuki, in laymen's terms, how profit before tax and taxable income are reconciled.

QUESTION 4

You are the Chief Financial Officer (CFO) of Sandy Ltd and presented the financial reports for the year ending 30 June 2023 to the board of directors. Kylie, one of the directors, disagrees that prior period deferred tax asset (DTA) and deferred tax liability (DTL) amounts were used to adjust the current year's DTA and DTL figures.

Required:

You are having a meeting with the board of directors next week and must explain, in laymen's terms, why prior period amounts are considered when identifying the closing DTA and DTL for the current year.

Viva Voce Questions to be presented in Week 4Viva Voce Questions to be presented in Week 4

ACCT7010 Company Accounting

Quarter 3 2023

Viva Voce Questions - Module 3| Presentations due in Week 4

QUESTION 1

You are the Chief Finance Officer (CFO) of John Ltd. and have prepared the financial reports for one of your clients, Rusty Ltd. Sarah is the Managing Director (MD) of Rusty Ltd, and she has limited accounting knowledge. Sarah does not understand why you have used the tax base to work out the amount of tax expense for some items.

You are having a meeting with Sarah next week to clarify some of questions she has around the financial information.

Required:

At the meeting, you need to explain to Sarah (in laymen terms) why the tax base amount is considered when calculating tax expenses.

QUESTION 2

You are the accountant at Sandy Ltd. and have provided the financial statements for the year ending 30 June 2023 for circulation at the next board meeting. You have been informed that one of the board directors, Annie, has questioned the consideration temporary differences in the calculation of tax payable. Annie has limited accounting knowledge and does not understand why you did not use the total revenue amount to work out the income tax payable amount.

Required:

At the upcoming board meeting you will explain (in laymen terms):

The concept of temporary differences, and

Why we do not consider total revenue to work out the income tax payable amount.

QUESTION 3

You are the senior accountant at Jamie Ltd. and submitted the financial reports for the year ending 30 June 2023 to Yuki, the Chief Executive Officer (CEO). Yuki has limited accounting knowledge and does not understand why you did not depreciate land, but instead had an impairment loss for this non-current asset.

Required:

Explain to Yuki, in laymen term, why you have charged impairment loss against land rather than a depreciation amount.

QUESTION 4

You are the Chief Financial Officer (CFO) of Sandy Ltd and presented the financial reports for year ending 30 June 2023 to the board of directors. Kylie, one of the directors, disagrees with the amount of goodwill included within the accounts. She believes it is an understated figure.

Required:

You are having a meeting with the board of directors next week and must explain, in laymen terms, how you have come up with the goodwill amount included within the financial statements.