FAC1601
ASSIGNMENT 4 – SEMESTER 2 2022
, 1. 3
An entity has borrowed funds three months after the financial year end. At the end of the
current financial year, the amount borrowed should not be disclosed as a current liability in
the financial statements since these funds were borrowed after financial year end.
Information is material if its omission or misstatement not only influences the decisions of
management.
2. 1
Management does not have the option to disclose assets and liabilities on a net basis if it
prefers.
Omission or misstatement of information refers to the concept of materiality.
3. 1
R
Accumulated Depreciation: Vehicles – 1 June 2014 135 000
Accumulated Depreciation: Equipment – 1 June 2014 20 000
Depreciation – old vehicles (270 ) 45 000
Depreciation – old equipment (90 000 – 20 000) * 15% 10 500
Depreciation – new vehicle (85 ) * ) 4 722
Depreciation – new equipment (25 000 – 5 000) * 15% * ) 1 750
Accumulated Depreciation – 31 May 2015 216 972
ASSIGNMENT 4 – SEMESTER 2 2022
, 1. 3
An entity has borrowed funds three months after the financial year end. At the end of the
current financial year, the amount borrowed should not be disclosed as a current liability in
the financial statements since these funds were borrowed after financial year end.
Information is material if its omission or misstatement not only influences the decisions of
management.
2. 1
Management does not have the option to disclose assets and liabilities on a net basis if it
prefers.
Omission or misstatement of information refers to the concept of materiality.
3. 1
R
Accumulated Depreciation: Vehicles – 1 June 2014 135 000
Accumulated Depreciation: Equipment – 1 June 2014 20 000
Depreciation – old vehicles (270 ) 45 000
Depreciation – old equipment (90 000 – 20 000) * 15% 10 500
Depreciation – new vehicle (85 ) * ) 4 722
Depreciation – new equipment (25 000 – 5 000) * 15% * ) 1 750
Accumulated Depreciation – 31 May 2015 216 972
