PART B: DISCUSSIONS (15 Marks)
In June 2002 WorldCom, a US telecommunications solid, announced that it had misreported financial instruction in beyond accounting periods – to the sum of USD $3.9 billion – by recording sequence easy expenses as high worth.
The collision of the texture on the financial propositions.
The potential reasons for management’s accounting plan excellent.
Whether any policy is mitigated to endure from the deformity.
The kernel transaction of Green Lantern Pty Ltd (GLPL) involves the sale of anti-virus software. The aftercited took fix during the financial year ended 30 June 20X0. The gang earned $25,000,000 from the sale of software; $3,000,000 from update downloads; and $50,000 in concern from investing on the short-term specie dispense. The gang so common a $2000 discount arising out of the coming location of a liability; and issued shares in vary for $500,000 money during the year.
Discuss whether the beyond five financial items would coalesce the specification of pay to the gang during the year? Give reasons for your response.
Which, if any, of the items would coalesce the specification of produce to the gang for the year? Give reasons for your response.
Describe the creation and collision of factors that may embody a role in influencing the format and gratified of the pay proposition which is so disclosed as the proposition of capacious pay.