Accounting issues.docx - Accounting issues If it is determined Razor has a going concern issue the financial statements would have to be stated a

Accounting issues.docx - Accounting issues If it is...

This preview shows page 1 - 2 out of 2 pages.

Accounting issues If it is determined Razor has a going concern issue the financial statements would have to be stated a liquidation value. Need to discuss more about it\ The injection from DE should be considered a liability “ arguments for recording aslong term debt: DE has stated that it wants Razor to pay back the 2M in the next few years which is more than a year so long term”. IFRS XXXX – equity, the instrument must not included a contractual obligation to deliver cash or another financial asset to an entity and that the presentation should be based on the overall substance rather than the form of the transaction. The parent company wants to be repaid in the next few year was indication that the transaction had the substance of a liability and not that of an equity transaction. MM account receivable was probably overvalued. “to date there is discrepancy of 225000 which may be potentially be written off if MM is unwilling to pay”.
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Spring '10
  • Michaelson

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture