International financial reporting standard

Assignment Help Financial Accounting

Reference no: EM133017199

You have recently joined the finance team of Vizza plc (Vizza), a listed company which operates a chain of vegan pizza restaurants. The Finance Director has emailed you asking for some help to address the following issues before the financial statements can be finalised for the year ended 31 March 2021.

a) The Finance Director would like to revalue Vizza's London restaurant as a one-off on 1 January 2021. She does not want to revalue any of the other properties as many of them have fallen in value. The Finance Director thinks the property should be revalued to £3m from 1 April 2020 based on a property TV programme she watched.

b) In February 2021 a customer made a claim against Vizza, stating that they suffered from food poisoning after visiting one of Vizza's restaurants. It is a difficult case to prove and lawyers have advised that it is 30% likely that the customer will win the claim if it goes to court. If the case is lost, it is expected that damages of £30,000 will be payable to the customer.

c) On 1 April 2020, Vizza started developing two new vegan products in-house: V1 and V2. The following costs have been incurred on the projects for the year ended 31 March 2021:

Research into product development £210,000
Development costs
V1 £72,000
V2 £50,000
Advertising of V1 £20,000
Staff training on V2 £12,000

Sales of product V1 commenced on 1 January 2021 and it is expected that the product will have useful life of three years, with a residual value of £nil. V2 is still being developed at the year end.

a) Form an email to the Finance Director explaining the required International Financial Reporting Standard treatment of issues a), b) and c) above in the financial statements of Vizza plc for the year ended 31 March 2021, preparing all relevant calculations.

Reference no: EM133017199

Questions Cloud

Mixed type social-economic system : Is a Scandinavian-type system or a mixed type social-economic system (a system in which the state owns and/or is a shareholder in some corporations) appropriate

Core values down the organizational structure : How leaders are supposed to cascade the core values down the organizational structure. Leaders should be equipped with skills such as providing critical feedbac

Assumption about a population parameter : A statistical hypothesis is an assumption about a population parameter. This assumption may or may not be true. Hypothesis testing refers to the formal procedur

Analyze john deere total compensation package : Analyze John Deere's total compensation package. Explain how they position themselves within the market place (lead, match, or follow competition) and why.

International financial reporting standard : Form an email to the Finance Director explaining the required International Financial Reporting Standard treatment of issues

Describe career-related events in life : Are there any events that occurred or will occur soon, such as an impending academic deadline, a job offer, or a layoff? Describe career-related events in your

Discuss the pros and cons of statement : 1."From an ethical point of view, big business is always bad business." Discuss the pros and cons of this statement.

Desired improvement in an area of ethics : The student will write a 1000 (min) word thesis that focuses on his/her personal norms, beliefs, and values. The student may emphasize changes in their code of

User Account

All Pages