wk 2 tut sols - Tutorial Week 2 Homework Chapter 3 Company Operations CASE STUDIES Case Study 4 CLEARSAILING LTD A Currently there is no Australian

wk 2 tut sols - Tutorial Week 2 Homework Chapter 3 Company...

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Tutorial Week 2 Homework 1 Chapter 3: Company Operations CASE STUDIES Case Study 4: CLEARSAILING LTD A. Currently, there is no Australian accounting standard to provide accounting policies or guidance to deal with accounting for advertising expenditure of this kind. Two potential accounting policies are: (a) expense all advertising expenditure as incurred, or (b) capitalise all advertising expenditure (i.e. treat the costs as an asset). B. AASB 108, paragraph 10 states that, in the absence of an Australian accounting standard, management shall use its judgement in developing and applying an accounting policy that results in information that is both relevant to the economic decision making needs of users and is reliable, i.e. provides a faithful representation of the entity’s financial position and performance, as well as being free from bias and complete. Paragraph 11 requires management to refer to the accounting standards of other bodies dealing with similar and related issues and the definitions, recognition criteria and measurement concepts contained in the conceptual framework when choosing between competing accounting policies.
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  • Fall '09
  • Balance Sheet, Comprehensive income, Generally Accepted Accounting Principles, General Reserve, revaluation surplus, PANSY LTD

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