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Assignment example - Financial Accounting
Finance & Accounting
Pages 3 (753 words)
Case Study, IBI Ryan PLC Institution Case Study, IBI Ryan PLC QUESTION 1 According to the IAS 18, revenue is benefits of income inflow during the period arising during normal activities of an entry. An increase of the inflow results in increase in equity…
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25,000 should be included in the revenue for the year ended 31 March 2013. ?50,000 for the paid goods by Witney limited should be included in the revenue for the year ended 31 March 2013. The amount of the sale of laptops that should be included in the revenue for the year ended 31 March 2013 is the full price for the contract with PC4U Ltd that is ?2,720,000. According to the IAS 18, the amount of servicing should affect the period in which the servicing takes place (Accaglobal.Com, 2013). To provide the true picture of the IBI Ryan Plc Company, adjustment of the amount included in the revenue and profit of the year ended 31 March 2013. The change will reflect a change in the overall profit and revenues for the year ended on 31 March 2013. The actual cost of electrical goods, which should be included in the revenue and profit, is ?25,000. This will less the final profit and revenue for the year ended on 31 March by ?25,000. The goods involved should be included in the closing inventory. For the sale involving IBI Ryan Plc and Witney, for the sale made on 28 March, the amount of ?50,000 should be included in the revenue and profit for the year ended on 31 March. This entry involves the amount received for the period closed on 31 March. In this way, the company will avoid creative accounting and earning management. According to IAS 18, revenue is a measure of the fair value of the consideration receivable or received. ...
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