Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if we are an auditor, then carry out an audit of t

If we are an auditor, then carry out an audit of the financial statements by...

60.1K

Verified Solution

Question

Accounting

If we are an auditor, then carry out an audit of the financial statements by December 31,2022.
When we conducted the audit, we received information that the client in November 2022 apparently experienced a debt covenant violation because several ratios were violated, such as the current ratio which should have been 3:1 to 1:1, no dividend distribution was violated so there was no dividend distribution.
Because the company violated it, the company management then tried to have the articles arising from the violation of the debt covenant removed. In the end, the directive succeeded in requesting the bank and an agreement was made on February 28,2023. As additional information, the date of the audit report was March 15,2023.
Question:
1. What impact will the illustration of these conditions have on the Financial Report 31 December 2022?
2. Does doing a wave after the balance sheet date change the composition of long-term contractual loans to short-term? Or is there no effect?
Give reasons for each component of the question and relate it to PSAK 1/ IAS 1 and IFRS

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

An explosion breaks an object into two pieces, one of which has 2.30 times the mass...

Physics
Q

1 A capacitor of capacitance 100 uF is charged by connecting it to a battery...

Physics
Q

Darla purchased a new car during a special sales promotion by the manufacturer. She secured...

Geometry
Q

Samples of DNA are collected and the four DNA bases of A G C and...

Statistics
Q

Assume that a randomly selected subject is given a bone density test Those test scores...

Statistics
Q

Bramble Corp. had 290000 shares of common stock issued and outstanding at December 31, 2020....

Accounting
Q

The accountant for Pilis Gadgets Shop prepared the following list of account balances from the...

Accounting
Q

B Co acquired 100% of the voting common shares of S Co,by issuing bonds with...

Accounting
Q

to record credit sale,merchandise sold,returned,cost,credit sale,,THANK YOU IN ADVANCE!!!! Assume...

Accounting
Q

Real estate professionals must dedicate at least _% of their personal service performing real estate...

Accounting
Q

Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable,...

Accounting
Q

Selati ltd' new customer, Sukiri Ltd, purchased inventory, classified as essential goods under the regulations...

Accounting