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intermediate financial accounting

QUESTION 3 1. The International Financial Reporting Standards Foundation (IFRS Foundation) is committed to developing, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require trarsparent and comparable information in general purpose financial statements. The various pronouncements of the IFRS Foundation are sometimes collectively referred to as International Financial Reporting Standards (IFRS) GAAP. Required: i) Briefly explain why a regulatory framework is necestary. (3 marks) ii) Explain what is meant by enhancing qualitative characteristies aceording to the International Accounting Standards Board's (IASB's) Framework for the Preparation and Presentation of Financial Statements. (2 marks) 2. In accordance with LAS 37 Provisions, Contirtgent Liabirities and Contingent Assets, state the conditions that must be met in order for a provision to be recognized. (I th marks) 3. On February 1, 2017, Iver Company Lad prepaid an insurance policy to cover the year beginning on that date. The bookkeeper debited lnsurance Expense and credited eash for the $7,000 payment. No adjustment was made at July 31,2017 , the end of the company's fiscal year. For the year ending July 31, 2017, the compeny reported net income of $18,000, Required: Compute the correct net income for the year ended July 31, 2017. (I 5 marks)

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