Explain your accounting treatment for the following transactions with assumptions, principles and conventions underlying the preparation of each of the following accounting entries:
Mar 1(d)
Purchased 10% shareholding in Charlotte Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,000,000 as at 1 March. The purchase consideration included a $1,800,000 note receivable due from Charlotte Limited and the related interest receivable balance of $96,000, $94,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $80,000.
Mar 30
Received a check of $15,525 from the liquidator of Tony Limited. Tony Limited was closed down in December 2019 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of Tony Limited, as of then.
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Antibiotics are antimicrobial drugs produced from other organisms, such as fungus and some bacteria, which are used for treating against the harmful infections caused by pathogens or harmful microorganisms. These antibiotics functions by:
Alteration of Cell Membranes.
Inhibition Antimetabolite Activity.
Inhibition of Nucleic Acid Synthesis.
Inhibiting of Cell Wall Synthesis (a most common mechanism).
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Answer:Four underlying assumptions characterizes the IFRS: going concern, accrual basis, stable measuring unit assumption and units of cost purchasing power. Below these assumptions are explained in further detail: 1. Going concern: The assumption that a business entity will be in operation for the foreseeable future.
Explanation:
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