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Tutorial 1.1
(Solution included in
SQB)
GAAP theory
Chapter 1
Basic level
Tutorial 1.2
GAAP theory
Chapter 1
Basic level
Tutorial 1.3
Development of IFRS
Chapter 1
Intermediate level
Following your recent success in your accounting examination, you have been appointed to a
listed company. The Chairman of the Board of Directors of the listed company is an
independent non-executive director (which implies that he does not work full-time at the
company and that he has no connection with the company other than in his capacity as a
director.) He is a man who is known for his short temper and dislike of waffle. He has
specifically asked you to write him a succinct (brief) memorandum answering two questions
that have been troubling him.
His first question arises from his irritation with all the IFRS standards that have been published
in recent years. He wants to know why there have been so many and what the advantages are
of adopting IFRS.
His second question arises from his concern about the level of communication with the
employees of the company. The company is a manufacturing company that employs a large
number of staff, and he feels that it would be appropriate to prepare some form of publication
specifically for the staff to communicate to them how the company has performed over the last
year. He has asked you to outline some of the general principles that should be taken into
consideration in the preparation of that type of communication.
Required:
Prepare a memorandum to the Chairman answering the two questions that have been posed.