IFR Week 5 Reading Alexander Britton and Jorissen Chapter 12,13,14 (& 15 but note this does not

refle t hanges to be introdu ed!

Week 5 Session work 1" Aldridge #td bought a ne$ building for %25&,&&& on 1 Januar' 2&&&" (uring the 'ear ended 31 (e e)ber 2&12, it paid for the follo$ing in onne tion $ith the building* % +nitial adaptation #egal osts of pur hase Cleaning ontra t for the 'ear Repairs to flooding da)age in June 2&&. /ffi e furniture ,5&& 12&& -.&& 54&& .5&&

0he Current 1ar2et 3alue for the Building is %3&&,&&&" 4hat a)ount should appear in Aldridge5s balan e sheet $hat harges at the 'ear end and $hat harges should be re orded in the +n o)e 6tate)ent7

2" (is uss the differen e bet$een a finan e lease and an operating lease" And state* a" 4h' has +A6 18 been a)ended so that there is nolonger an' distin tion bet$een the t$o t'pes of leases" b" 4hat the i)pa t $ill be on the finan ial state)ents of 9ingfisher :roup $hen these hanges ha;e to be i)ple)ented" " 4h' in 'our opinion did this a ounting standard re)ain un hanged for so long and $h' $as it onl' a)ended $hen the +A6B and the <A6B =oined for es"