Accounting policy choice – impact on financial statements

Accounting policy choice – impact on financial statements

Software Ltd is a software technology company that began operations at the beginning of 2017. It plans to list on the Australian Stock Exchange in 2019. The company believes that it can start selling its software program from 2018 (sales forecasts are in the income statement below). The software program is to be sold and delivered (i.e. downloaded) via the internet, thus allowing the company to avoid product sales and delivery costs. The company needs to carry out research and development activities throughout its life cycle to keep up with ever-changing computer technologies. The following schedule provides the expected expenditure on research and development.

Best Custom Essay Writing Services | EssayBureau.com

The CFO notices that as the company is expected to make a loss in 2019, it would be difficult to go for a public listing in 2019. He is considering the accounting policy on research and development costs as follows: research costs expected to be incurred in 2019 and onwards will be capitalised and amortised over three years, and development costs expected to be incurred in 2018 and onwards will be immediately expensed.

1 Recalculate the summary forecast income statement to reflect the change in accounting policy for research and development.

2 Explain why the CFO may want this change.

3 Would the above change be consistent with Australian Accounting Standards?

4 Discuss the cash flow implications of the proposed accounting policy changes for the year 2018 only.

find the cost of your paper

determine and argue whether OpenTable was a sound acquisition for Priceline using the concepts from this and other courses

OpenTable was the first mover in the world of booking orders for restaurants around the globehttps://www.vox.com/2018/10/19/17698428/resy-restaurant-reservations-startup-opentable. After obtaining notoriety, they issued a massive IPOhttps://www.reuters.com/article/us-opentable-idUSTRE5464CJ20090507 andhttps://press.opentable.com/news-releases/news-release-details/opentable-inc-prices-initial-public-offering/ resulting in a stock price….

Internal and External Stakeholder Analysis

MGT501_Assessment_2_Brief_Internal and External Stakeholder Analysis_Module Due 5.2 Page 1 of 6 Assessment Task Critically analyse stakeholder theory in a real-life business or a project setting, with specific emphasis on relevant….

SUPPLY CHAIN MANAGEMENT

YOU ONLY HAVE TO DO SUPPLY CHAIN MANAGEMENT PARTABOUT 1 – 1.5 PAGES OR MORE WALMART READ ALL THE INFORMATION FIRST. YOU HAVE TO DO SUPPLY CHAIN MANAGEMENT PART ONLY….