|University||Singapore University of Social Science (SUSS)|
|Subject||ACC206: Financial Reporting|
ACC206: Financial Reporting Assignment, SUSS, Singapore Lam Refrigeration Ltd specializes in the design, supply, and installation of cold rooms, as well as maintenance and servicing
- Lam Refrigeration Ltd specializes in the design, supply, and installation of cold rooms, as well as maintenance and servicing of commercial and industrial refrigeration for supermarkets and other uses. For the month of February and March, the company did a sales promotion for its latest model of cold room design. On 1 March 20X2, the company entered into a contract to install a cold room for Economical Supermarket Pte Ltd for $47,000.00. Does the cold room come with a 12-month warranty against defects?
The promotion also comes with the additional freebies:
- Extended one year warranty against defects
- 4 six-monthly maintenance and servicing
- Tickets to All-Stars Celebration Concert
The standalone selling prices of the freebies are:
- Extended one year warranty against defects = $600
- 4 six-monthly maintenance and servicing = $2,000
- 2 tickets to All-Stars Celebration Concert = $400
- Without a framework for preparing financial statements, accounting standards would develop in a random, haphazard way, in reaction to arising issues. In this context, the Conceptual Framework – though not itself a standard – serves a as common ideology by which the International Accounting Standards Board interprets existing standards, develops new ones, and defines accounting positions in difficult cases.
On 29 March 2018, the IASB released a revised Conceptual Framework for Financial Reporting to replace the previous version issued in 2010.
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