Assignment
You are the Group Accountant for the Australian-based company BEAR Ltd. The Chief Financial Officer (CFO) has asked you to provide a report related to events/transactions outlined below in preparation of the annual report of the company for the financial year ending 30 June 2023. Today's date is 25 July 2023. The CFO wants to ensure that transactions are being reported accurately by you and that you have a thorough understanding of the applicable accounting standards related to these transactions and accounts.
The following events/transactions have occurred over the time since the last annual report was prepared and issued. You need to determine how you will treat these events/transactions as well as provide appropriate disclosures or adjustments to the accounts where required, in BEAR Ltd's financial statements for the financial ending 30 June 2023 and upcoming annual report to shareholders.
Task
1) Identify the nature of the transaction/event.
2) Identify, provide and discuss the applicable accounting standard(s) for the events/transactions relate(s) to and why.
3) Is there a requirement for the transaction or event to be disclosed in the annual report? If so, provide a suitable disclosure note to the accounts that the company will use in their upcoming annual report or alternatively where it should appear in the financial statements. (Ensure you include amounts as well as any workings where applicable).
4) Is there a requirement for an adjustment to be made to the financial statements? If so, what would this adjustment amount be to the accounts? Provide sufficient workings (calculations) where required.