Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Pharma Duplicitous Ltd is developing a new drug for diabetes. The expenditure does not meet the requirements for deferral as an asset and must be expensed in the current period. The amounts involved are material: the trial balance shows salaries for chemists $6 million, depreciation of laboratory equipment $4.8 million, supplies consumed in the laboratory $3.9 million and $8.8 million for the amortisation of related patents. Pharma Duplicitous Ltd expects that further development of the drug will allow commercial production and product sales to commence in another three years.
The main difficulty faced by the auditor is whether the expenditure should be classified as research and development expense or as general administrative expenses. In addition, the auditor is concerned about the accuracy of the amounts claimed by the client.
Required -
(a) Explain why the classification of the expenditure is important and needs to be tested.
(b) Suggest to the auditor some techniques for substantiating the expenditure amounts.
This problem belongs to Basic Accounting and it explanation about report on evaluating performance of crew at Hyatt in Tampa
consider the issue of limitation on deduction on personal losses on capital assets such as stock trading to 3000 per
The bonds are properly classified at financial liability at amortized cost. What is the carrying value of bonds payable on December 31, 2016?
X and Y invest $100,000 and $50,000 respectively in a partnership. What would be X's & Y's share of the following net income
The user has updated the question: User's response: Calculate the financial impact of buying a CT unit that would cost $3.0 million, would have a five-year useful life, would have a 10 percent salvage value.
What is the amount of interest expense that must be presented on "ABC" Company income statement for the year ended December, 31, 2020
Record the following transactions which occurred consecutively. A total cash dividend of $75,000 was declared and payable to stockholders of record
zoya arbiser regional manager of gold medal sports shops is reviewing the results of 15 stores in her region. store
All costs are variable except for $100,000 of manufacturing, Calculate amount of net income XYZ Company would report from producing and selling 150,000 units
Find the amount necessary to fund the given withdrawals Quarterly withdrawls of $900 for 6 years; interest rate is 4.8% compounded quarterly
Consider a fast-food restaurant where customers enter at a rate of 75 per hour, and three servers are working. Customers wait in a single line and go, in FCFS fashion, to the first of the three servers who is available. Each server can serve one c..
Azwan, an audit senior at Johan, Aidil & Partners is assigned to audit a new client in Sarawak. Discuss the ethical and professional issues raised
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd