Corporations and accounting

Why do Corporations need financial reporting Standards? Explain the two major standard Setters Q2. Accounting Information system takes in the whole process of accounting cycle. Explain each step in the accounting cycle with a numerical example of your own Q3. A. What do you understand by allocation to non-controlling interest and discontinued operations? Explain how are they reported in the income statement. B. Intraperiod Tax Allocation. XYZ Co. has income before income tax of SR 50000. It has a gain of SR 10000 from a discontinued operation. Assuming a 35 percent income tax rate how would XYZ Co. present the information on the income statement and if it has a loss of SR 10000 from a discontinued operation. Assuming a 35 percent income tax rate show the changes in Income on the income statement Q4. Presented below are a number of statement of financial position items for ABC Inc. for the current year 2020. Goodwill SR 125000 Accumulated Depreciation – Equipment SR 292000 Payroll Taxes Payable 177591 Inventories 239800 Bonds Payable 285000 Rent Payable – Short-term 45000 Cash 360000 Taxes Payable 98362 Land 480000 Long-term Rental Obligations 480000 Notes Receivable 445700 Share Capital – Ordinary $1 Par Value 200000 Notes Payable to Banks 265000 Share Capital – Preference $10 Par Value 150000 Accounts Payable 490000 Prepaid Expenses 87920 Retained Earnings 713897 Equipment 1470000 Income Taxes Receivable 97630 Trading Securities 121000 Unsecured Notes Payable (Long-term) 1600000 Accumulated Depreciation – Building 270200 Building 1640000 Prepare a classified statement of financial position in good form as per IFRS. Assume that notes receivable and notes payable are short-term unless stated otherwise. Cost and fair value of trading securities are the same Requirements:

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