Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 12.5 the annual accounting date of lawston plc is

12.5 The annual accounting date of Lawston plc is 31 May. The following...

80.2K

Verified Solution

Question

Accounting

image

12.5 The annual accounting date of Lawston plc is 31 May. The following matters need to be dealt with before the financial statements for the year to 31 May 2020 can be finalised: (a) The company is currently suing one of its suppliers for failure to supply goods according to contract. Legal advice suggests that Lawston ple will probably win the case and will probably be awarded damages. (b) The company operates an open-cast mine and is legally obliged to restore the environment when mine workings are complete. This is expected to occur in the year 2030. The estimated cost of rectifying the environmental damage caused so far is 3 million. The estimated total cost of rectifying the damage caused until mine workings are complete is 25 million. Explain how these two matters should be dealt with in the financial statements for the year to 31 May 2020

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

IQ tests are sometimes used to assess children’s cognitive abilities. However, typical IQ tests draw on...

Statistics
Q

Please explain the affects that concentration of monomer can have on typical a radical polymerization

Chemistry
Q

What do you really think about the accounting profession? What might you find most challenging or...

Accounting
Q

For each of the product applications below answer the material design, requirement and selection questions using...

Mechanical Engineering
Q

The value of f depends on two independent variables x and y as defined below: f(x,y)=x2+y2−x+3cos(x)sin(y) Function f...

Mechanical Engineering
Q

36 Which statement is false about most metabolic pathways A The enzymes that catalyze reactions...

Biology
Q

A ferris wheel is 45 meters in diameter and boarded from a platform that is...

Basic Math
Q

Addition to land revaluation reserve $100,000 ...

Accounting
Q

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end...

Accounting
Q

Please answer whether all of them are either understated, overstated, or no effect. Thank you!...

Accounting
Q

please help/show work trying to learn! Dana Inc. issued $100,000...

Accounting
Q

Maxwell communications paid a dividend of $1.20 last year. Over the next 12 months, the...

Finance