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Critically assess the following cases within the context of the IAS 37 requirements for provision accounting.
(a) Company A offers a one year warranty for the products that it manufactures. Yearly revenue subject to product warranties amounts to €3 000 000. In past years between 1 per cent and 3 per cent of the products proved defective. Defective products are replaced.
(b) Company B produces and sells phosphate fertilizers that are used to grow grains. The process of extracting the raw materials from the land the company owns, has a major impact on the natural environment. At balance sheet date, estimates of environmental remediation costs amount to €5 000 000.
(c) A law suit claiming damages has been filed against company C. The company foresees a reasonable possibility of losing the law suit. The company's legal advisers have estimated potential settlement costs at €350 000.
(d) Company D runs an airline. The company is required by law to overhaul its aircraft once every three years. The future maintenance costs are estimated at €2 500 000.
For income tax purposes, the company wishes to use the depreciation method that minimizes income tax payments in the early years of as- set use. Identify the depreciation me
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Carolyn works as a freelance journalist. In November 20X1 she wrote an article for a magazine. The article appeared in the February 20X2 issue and she was paid in March 20X2
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报告的递延税款是多少in the balance sheet? Assuming that the deferred tax liability balance was $32,000 the previous year, prepare the appropriate
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