Henry is a new accounting recruit at Green Fields & Co Certified Public Accountants. He has been undergoing a rigorous training and orientation exercise at the firm. A client of the firm, Grout Industries Company Limited (GICL) whose Accountant left abruptly for greener pastures, has brought a list of account balances to aid in the preparation of the final accounts of the Company. This assignment has been referred to Henry to test his financial accounting skills.
The list of account balances as at 31st December 2021 is shown IN THE ATTACHMENT..
Required
Q.1.
(a)Taking the role of Henry and using the data provided, show how you would explain the performance of the company for the year ended 31st Dec. 2021.
(b)Discuss the reasons various stakeholders may be interested in the accounts of Grout Industries Company Limited showing, for each of them, their information needs.
©Explain, how in your view ‘you would treat a bad debt that had been written off and the debtor resurfaces and pays towards the end of accounting
Q.2
a)Using the knowledge you have acquired in this course and as per guidance fromIAS I and IPSAS 1, what would you consider a complete final Accounts ready for publication?
b)Explain how you would interprete Financial statements to the different users of accounting information with illustrations.
c)As per IAS 16: PPE, how would you recognize your company’s assets that wereacquired with the intention of generating Revenue
(d) Explain how you would treat debtors of business?
Q3.