All questions within Problem 2 relate to GoodTaste Co a producer of food products. Question 2a Definitions (2 Points) Required: Define the term liability in accordance with IAS 1 Presentation of Financial Statements. Question 2b Intangible assets (2 Points) Required: List the conditions for the recognition of expenses on developing new products as intangible assets. Question 2c Recognition and initial measurement (2 Points) On the 1st of June 2011 GoodTaste Co purchased a new freezer for 23,000 of which 2,000 was the VAT tax. In addition GoodTaste Co had to pay 250 for transport to its facility, 1,500 for installation and 230 in non-refundable environment taxes. Required: Calculate the initial value of the freezer and explain the treatement of any expenses not included in the initial value. Question 2d Provisions (4 Points) GoodTaste Co was taken to court by a group of angry parents, whose children suffered from poisoning after eating GoodTaste Co products. The company's lawyers arrived at a conclusion that the case may be won, but the management board decided that the potential negative publicity can be highly damaging. They decided to settle the case at a cost of 120,000. A binding agreement will be signed by the end of January 2012. Required: Explain why this event meets the conditions of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and explain how it should be treated in financial statements for the year ended 31st December 2011. Question 2e Impairment (4 Points) GoodTaste Co has learned that profits on its ice-cream operations are likely to be reduced substantially over the next few years. They decided to test the cash generating unit associated with ice-cream production for impairment. The operations are currently carried at 1,200,000. It is estimated that they will bring net cash flow of 100,000 per year into infinity, with the cost of capital (discount rate) of 12%. The operations could be sold for 950,000, but the sale would require additional costs of 90,000 to bring the operation to the right condition. Required: Discuss whether an impairment is necessary under IAS 36 Impairment of assets, calculate the amount of impairment (if any), and describe its treatment in the financial statements. Note: to calculate the present value of a perpetuity divide the amount received per year by the discount rate. Question 2f Revaluation (4 Points) GoodTaste Co is an owner of a large, empty plot of land. The plot was acquired for 300,000 in 2006. It was then revalued to 380,000 in 2009, the increase was credited to a revaluation reserve. However, in 2011 the company learned that the prices of land in the area have decreased substantially. After comparing the plot of land with prices in the area its value was assessed at 290,000. Required: Explain the treatement of this event in accordance with IAS 16 Property, plant and equipment and calculate the relevant amounts. Question 2g Liabilities (4 Points) GoodTaste Co issued a 5-year bond with face value on the 1st of June 2011. The bond was sold at par for 1,000,000, which is its face value, and the cost of issuing the bond was 50,000. The bond carries a coupon of 8% paid to holders annually, but including the cost of issuing the effective cost to the firm is 9.30%. The issue has been included in the trial balance as a liability of 4/4 1,000,000 and the cost of issue was debited to financial expenses. Required: Explain the treatement of the issue in the financial statement in accordance with IAS 39 and provide the relevant amounts for the year ended 31st December 2011.

just problem 2 i need please

24 3 of 4 Buen. The studente Al Questions wine Problem z relate to Good Timise a producer of food producte. Question 2 Definitions 2 Points) Required. Define the term fiability in accordance with 1451 Presentation of Financial Statement Question bintang beses (2Points) Recured Let the conditions for the recognition of expenses on developing new produce Intangible assets Question 2c Recognition and initialement Point On the 1st of June 2011 Good Taste Copurchased a new rezertor 23.000 of which 2.000 the VAT tax In addition Good Taste Co had to pay 2.50 for transportisti Et 500 for installation and 230 in non-refundable environment Required. Calculate the initial of the tree and explain the treatment of my expenses not included in the value Question 2d Provisions (4 points) Good Taste Co was taken to court by a group of any parents who chided poisoning after eating Good Taste Co products. The company lawyers arrived a conclusion that the case may be won, but the management board deed het e potential negative can be highly damaging They decided to set the case at a cost of E120,000. A binding agreement wi be signed by the end of January 2012 Required: Exploh why this event meets the conditions of IAS 37 Provision Contigo and Contingent Assets and explain how should be treated in financial statements for the ended 31 December 2011 Question 2e Impament (Points) Good Taste Co has leamed that profits on its imperations are to be reduced substantially over the next few years. They dooded to test the cash generating unted wincam production for ment The option centy came E1200.000 is estimated that they will bring net cash flow of E100.000 per year into Infinity, the cost of capital discounts of 12% The operations could be sold for 950.000, but the sale would require addisional cost of 90,000 to bring the operation to the right condition Required: Discuss whether animam necessary under S 38 mm Chcete the amount of momentanyland deere treatment in the france Not to calculate the present value of a perpetuty divide the amount received per year by the discount rate Question 2 Revation (4 points) Good Taste Co is an owner of a large empty plot of land. The plot was acquired for 100.000 2006. It was then revalued to E380,000 in 2009, the increase was credited to a real reserve. However, in 2011 the company learned that the prices of land in the area have created substantially her comparing the plot of land with prices in the area is value was assessed 250,000 Required: Explain the treatment of the event in accordance with AS 16 Pred equipment and calculate the relevant amounts Question 29 Liabilities (Points Good Taste Cosuda 5year bond with face value on the oute 2011. The band at par for 1.000.000 which leis face value, and the cost of using the band a 60.000 The bond carries a coupon of paid to holders annually, but including the cost of the effective cool to the firm 9.30%. The tas been indused in the balance as a 1.000.000 and the cost ofte wan debited to an Required: Explain the treatment of the issue in the financial statement in accordance w 30 and provide the relevant amounts for the year ended 31st December 2011 other Sangles Price Gestions Problem. These income Alumns with Problem relate to Geoduck Cobre a construction company Extract on the relanceel Good Co 31. December 20 EUR Cents of service 220.000 Contract progress 7. Sules divers 20.000 pament 8.000 Question la Definitions 2 Points) Required Define and expenses in accordance with 181 Pation statements Question tb Revenue Recognition (2 Points) Required. Explain how the recognition of reconstruction companies is from that in matuturing companies according to the IFRS) Question 1c Events after FYE (2 Points) On 15 January 2012 the accounting department at Goodlucomed that by December the company had completed Box of a construction contract. The expenses associated were contract had been accounted for but not the revenue. The diet had made no parte the contract Recured. Explain how this event should be treated under 10 Even after the balance sheet date 2 Points) Question 1d Louses (3 Pores) Goodluck Coentered a lease contract for a diger machine on the 2nd of January 2011. The machine could have been bought outright for 60.000. Under the lease contact Goodluck paid 10,000 on the 2nd of January 2011, and then will need to pay 20.000 January 2012, 2013 and 2014. The effective role implit in the house. The last fined as an operating and the first payment was included inexpenses de conta should be recognised as a liability on the 2nd of January 2011 Question 1 Ls2 Points) Refer to the transaction described in questions de Required: Calculate the trance charge for the year ended 3. December 2011 Question to 2 Points) Refer to the transaction described in questions 10 Recured on the test of the transaction (including the amounta) forety ended December 2012 Question to Construction contacts Porta On the 1st of February 2011 Good Confered a 3-year contruction contradda Cream factory. The budgeted revenues 1200.000 with costs budgeted at 300.000 Byt December 2011 700,000 of the total contract cut had been named and recorded Contract in progress"No revenue has so far been recorded in the accounts Recuined. Explain the counting rates and cate the amountate.com 2011 The cient has so far transferred progress payments to the mount of SS 000 Question thaxs Points) Goodluck Co pay corporate income tax statutute of 275 of income before taxe income on construction contracte questions and is and when cash received from the client. The client has so far paid 500.000 since the start of the contract in February 2011 Required. Explain the reatment of the tax on construction contract venue Collect tar, the amount of tax ability and deferred tak Question Statement of Income (4 Points) Refer to all the questions above and make propriate to the ta th. Tc and 11) Required. Prepare the statement of income for the year ended 31 December 2011 on the of the trial balance and the questions above. Ata minimum wrte the form of the tento income with corresponding amounts from the trial balance