MGAB02H3 Study Guide - Final Guide: Current Liability, Accrual, Contingent Liability
6 Jan 2016
School
Department
Course
Professor
Document Summary
Utsc mgab02 case 5 notes: role: You are playing the role of a financial consultant. Since joan is not very knowledgeable about accounting matters, she has asked you to review the financial statement received from. She also wants to make sure that abc"s current ratio of 2 to 1 and ifrs is adopted in preparing the financial statement. It appears that abc has recorded the deposit paid by the customer regarding the catering event now scheduled for january 20, 2015 on a cash base. Under ifrs, cash basis accounting is not acceptable. It is a requirement that abc should adopt the accrual basis of accounting: revenue recognition and matching principles needs to tie in to the accrual basis accounting as discussed earlier. students should integrate the revenue recognition criteria with case facts to establish the appropriate revenue recognition policy.
