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You are the Chief Financial Controller for FGX Limited, a prominent FMCG organization, significantly involved with food products. Your organization sells food items in Fiji and other Pacific Island Countries. Mr. Smith, an ex-Marketing Director, has been promoted as CEO for the organization. While in discussion, he raised a few concerns on the financials presented by you. He has a concern on the terminologies and standards used by you in the preparation of the financial statements. More specifically he has some questions, like: I. What is accounting conceptual framework and IASB? Why this is important for financial reporting? II. Why is it important to adopt IAS 1 to present the Financial Statements? III. What is income tax accounting? Why income tax accounting is important for the organization, and should be included in financial statements? IV. What is the purpose of maintaining provisions? V. What is contingent liability and contingent asset? Why should organization be concerned for these two events?
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