A new children’s hospital is being built in Springfield, and Friendly Corp. has publicly 8.3 pledged...

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Accounting

A new children’s hospital is being built in Springfield, andFriendly Corp. has publicly 8.3 pledged that it will contribute $5million toward the hospital’s construction. In its pledge agreementdated 1/1/X1, Friendly Corp. and the hospital have agreed upon thefollowing contribution schedule: $2 million to be contributed
at 12/31/X1, $2 million at 12/31/X2, and $1 million at12/31/X3. Friendly’s typical borrowing rate is 6%. How mustFriendly Corp. report the contribution in its financial statementsat the end of each reporting period and as of the inception of theagreement? What disclosures are required, if any?

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As per IAS 1 Presentation of Financial Statements there are 3 concepts 1st going concern 2nd consistency and 3rd accrual basis of accounting Accrual basis of accounting Accrual basis of accounting IAS 1 requires that an entity prepare its financial statements except for See Answer

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