We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>


Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

Topics/Areas for Discussion

 “IASB Framework”

Discussion Question:

The domestic electronics market has been witnessing a replacement of the conventional TVs with Smart TVs and LEDs. Due to this reason, a national company - ZEE Electronics has decided to enter into export business with third world markets having potential for conventional TV sets. The old financial statements of the ZEE have been showing after tax losses and negative net working capital since the year 2010. Yet, Zee managed to stay in the business. Now a day, owing to the government’s huge recent relief for the electronics industry, the company is projecting good profits from its exports in the days to come. Furthermore, ZEE is also expecting to arrange additional financial resources to meet its working capital needs and future expansions. Considering these facts, argue in favor and against the application of “going concern” assumption with reference to the financial statements prepared by ZEE.

Important Instructions:

  • Your discussion must be based on logical facts.
  • The GDB will open and close on above specified date and time. Please note that no grace day or extra time will be given for posting comments on GDB.
  • Use the font style “Times New Roman” and font size “12”.
  • Your answer should be relevant to the topic i.e. clear and concise.

+ How to Follow the New Added Discussions at Your Mail Address?

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 386

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Replies to This Discussion

is ka krna kia ha mjy ni smj ai

Fin611 gdb take idea write in ur own words dont copy paste

1st solution

Zee ltd is Favorable financial statements are prepared assuming that the company can and will continue its business in the foreseeable future. The assumption that a business is expected to continue in future affects the timing, nature and amount on which accounting transactions are recorded. For example, one criteria for classification assets and liabilities into current and non-current is whether they are realized/settled within normal course of business .

Zee LTd is required to assess at the date of financial statements whether a business is a going concern. Some accounting frameworks require management to disclose their assessment of going concern. Indicators that jeopardize the going concern status of a business include: (a) situation where liabilities exceed assets, (b) default of a loan(s), (c) tax penalties, heavy fines, etc., (d) very adverse regulations, (e) negative cash flows, (f) extremely adverse legal claims, etc.

Read handouts going concern topic
2nd solution
Zee ltd is in favorable; zee ltd should prepare financial statements that a business entity will continue to operate in the foreseeable future without the need or intention on the part of management to liquidate the entity or to significantly curtail its operational activities. Therefore, it is assumed that the entity will realize its assets and settle its obligations in the normal course of the business.

It is the responsibility of the management of a company to determine whether the going concern assumption is appropriate in the preparation of financial statements. If the going concern assumption is considered by the management to be invalid, the financial statements of the entity would need to be prepared on break up basis. This means that assets will be recognized at amount which is expected to be realized from its sale (net of selling costs) rather than from its continuing use in the ordinary course of the business. Assets are valued for their individual worth rather than their value as a combined unit. Liabilities shall be recognized at amounts that are likely to be settled.

RSS

Latest Activity

+ ! ! ! ! ! ! ! ! ! AG liked Biya's discussion Waqat Dolat Rishty. . .
51 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked Whispering Soul's discussion Mamu :D
51 minutes ago
Rana Shoaib updated their profile
1 hour ago
+ ! ! ! ! ! !blaire liked + Iuuoɔǝut+'s profile
1 hour ago
Biya liked + Iuuoɔǝut+'s blog post A Brief History of HTML
1 hour ago
+ ! ! ! ! ! ! ! ! ! AG replied to Biya's discussion Waqat Or Samajh
2 hours ago
+ ! ! ! ! ! ! ! ! ! AG liked Biya's discussion Waqat Or Samajh
2 hours ago
+ ! ! ! ! ! ! ! ! ! AG replied to Biya's discussion Khoob Sorat Bat. . . . .
2 hours ago
+ ! ! ! ! ! ! ! ! ! AG liked Biya's discussion Khoob Sorat Bat. . . . .
2 hours ago
+ !! SARAH liked + Iuuoɔǝut+'s blog post A Brief History of HTML
2 hours ago
Raheela joined + M.Tariq Malik's group
2 hours ago
Raheela joined + M.Tariq Malik's group
2 hours ago
+ !! SARAH liked +++Mahoo+++'s discussion Famous Logos With a Hidden Meaning(special for adeena)
2 hours ago
Raheela joined + M.Tariq Malik's group
2 hours ago
Raheela joined + M.Tariq Malik's group
2 hours ago
Raheela joined + M.Tariq Malik's group
2 hours ago
Profile IconRaheela and Iqra Malik joined + M.Tariq Malik's group
2 hours ago
+ Iuuoɔǝut+ replied to + Iuuoɔǝut+'s discussion Mujhe shakh shakh sy torna ................
2 hours ago
Hareem Malik replied to + Iuuoɔǝut+'s discussion Mujhe shakh shakh sy torna ................
2 hours ago
+ Iuuoɔǝut+ replied to + Iuuoɔǝut+'s discussion Mujhe shakh shakh sy torna ................
2 hours ago

Today Top Members 

© 2019   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service