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 matters need...

60.1K

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

Why are substrate analogs used to monitor enzyme activity? Can you please explain how this works...

Chemistry
Q

Part 1 A company produces steel rods. The lengths of the steel rods are normally distributed with...

Basic Math
Q

Write the following expression without negative exponents and without parentheses.2x3

Basic Math
Q

Question 31 Points 2 Capitalism is the free market economy whereas socialism is the innovative...

Algebra
Q

6. Sanix Inc. manufactures two types of disinfectants: Sanix Wipes (SW) and Sanix...

Accounting
Q

On January 6, 2016, Bulldog Co. purchased 26% of the outstanding stock of Gator Co....

Accounting
Q

A machine can be purchased for $220,000 and used for five years, yielding the following...

Accounting
Q

please help Investor Europe-Africa Facility Industry Company Average F 20,400 2,790 1,800...

Accounting
Q

what is the segment of the accounting profession that relates to providing audit, tax, and...

Accounting
Q

"Andria Mullins, financial manager of Webster Eelectronics, has been asked by the firm's CEO, Fred...

Accounting
Q

Carla Medavoy will invest $10,240 a year for 20 years in a fund that will...

Accounting
Q

Please help with A, B, and C.

Accounting