FINANCIAL ACCOUNTING Essay Example | Topics and Well Written Essays - 1250 words

FINANCIAL ACCOUNTING - Essay ExampleMore specifically, the report forget answer the question, What was the adjusted profit for the fiscal year ending 30th September 2010 and which were the actual adjustments do to the accounts to reach at that amount?1. In this case the problem lies in the fact that the financial aid was not aw ar of the new changes where there was a review in 31st March 2010 magnanimous the plant a useful life of 5 years. The depreciation rate that should be reflected in the financial statements and in the comptation of wage for the financial year should be based on the reviewed value. This is when IAS number 16 has been applied. The adjustments are discharge to be shown in the appendix number (1). A journal entry is to be apply to correct this error by the Financial Assistant.2. This was a case by the Assistant where he did not consider the review of the value of the building in 1st October 2009. This is from the original 700,000 to 1,200,000. The review wa s to affect the profits by being included as a profit or gain to the firm or else than opening a revaluation account and reflecting the same in the asset account (in this case the building). IAS 16 is also applicable in this case as it is the most appropriate. Adjustments necessary are shown in cecal appendage (2).3. This is a case where the Investment property was shown under land and buildings. There was no clear sawn-off line as to where it should have been included. Though, IAS 16 still applies in this case no action is going to be made in making a journal entry to rectify. This is since there are incomplete rates nor the depreciation rate applicable. Investment property shown in 30.09.2009 800,000Adjustment since the rate of depreciation is not given nor the useful years as well as how the assistant treated it during the current financial year, no adjustment is to be