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Question 1 (IAS 8) The financial statements for Venus ple for the year ended 30...

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Question 1 (IAS 8) The financial statements for Venus ple for the year ended 30 June 2023 were finalised and published in September 2023. These financial statements show total comprehensive income of f3.8 million. When preparing the intermal accounts for the quarter ended September 2023, the chief accountant discovered the following: 1. The accrual at 30 June 2023 for electricity and telephone was estimated based on prior year invoices. The invoice received after finalisation of the financial statements showed the amount was understated by 7,000. 2. In June 2023 , a purchase invoice for 10,000 was posted as $10,000 in error. The exchange impact was $790. 3. A major error involving the overvaluation of inventory was discovered. It is estimated that the corresponding overvaluation of closing inventory at 30 June 2023 would have been 700,000. Required: a) Outline how each of the above matters will be reflected in the financial statements for the current year, the year ended 30 June 2023, under LAS 8: Accounting Policies, Changes in Accounting Estimates and Errors. b) Explain, by reference to LAS 8, the factors a company should consider when establishing and reporting its accounting policies

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