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A. On 1 April 2022, Bucks plc acquired a government oil exploration license to constructed oil platform at a cost of 40 million. The terms of the licence are that Bucks will have to remove the platform and restore the seabed to an environmentally satisfactory condition in 12 years time at an estimated cost of 25 million. The 12-year present value discount factor 12% is 0.257 Required: B. A Mick Limited has a year end 31/12/2011. The following transactions in shares took place during the year:

1 January ordinary shares in issue 3,500,000 1 April 260,000 shares issued 260,000 1 May 420,000 shares issued 420,000 1 December 100,000 shares repurchased (100,000) As at 31 December 2,695,000

Calculate the weighted average number of shares at the end of the reporting period

C. Sodiq plc has 5 million ordinary shares in issue as at 1 January 2019. On 30 September, the company issued a rights issue of 1 for 4 at 80pence per share. The market price of the shares prior to the issue was 2 per share. Earnings for the year ended 31 December 2019 were 650,000. The EPS for 31 December 2018 was 10p per share.

Calculate basic EPS for the 31 December 2019 and restate the 2018 for comparative.

D. The following information relates to a company, MMT Ltd, for its draft accounts for the year end of 30 November 2020.

1. At the start of October 2020 the management of MMT met to finalise plans for the closure of all of its London offices. It has announced this decision and started negotiations with union representatives. The following estimated costs have been provided for: redundancy payments, penalties for early termination of leases, and costs of retraining the staff it intends to retain. 2. MMT is facing legal action from one of its customers, Jessica Co, for whom it organised a party. Jessica Co claims that some of its staff were ill after the event. The details are still being investigated. It is not possible to assess the likelihood of the case succeeding or any damages that might be awarded so no accounting adjustment has been made. 3. MMT has taken out legal action against a supplier for damage to the driveway at one property. The legal team has advised that, because of CCTV evidence available, MMT is likely to win the case but the company has not accounted for the expected damages. Required

Discuss, for each of the items above, whether the accounting treatment was appropriate. If an adjustment is needed, briefly explain what the adjustment would be. Your answer should refer to the requirements of IAS10 Events after the Reporting Period and IAS37 Provisions, Contingencies Liabilities and Contingent Assets as appropriate and you can assume all amounts are material.

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