Polyolefins such as polyethylene undergo slow degradation when placed in air. Degradation occurs by reactions with atmospheric oxygen that lead to the formation of carbonyl groups (groups containing oxygen), gradual….
explain how these events would be accounted for in accordance with AASB 110 ‘Events after the Reporting Period’.
On 22 August 2018, the management of Holloways Ltd completed a draft set of financial
statements for the year ended 30 June 2018. The board of directors signed a declaration
that the financial statements were prepared in accordance with the Corporations Act and
accounting standards on 14 September 2018, but Holloways did not publicly release its
profit and other selected financial information until 19 September 2018. The financial
statements were submitted to its shareholders for approval on 21 September 2018 and
approval was given on the same day.
The following events occurred after the end of the reporting period ended 30 June 2018.
Assuming that all amounts are material, explain how these events would be accounted for in
accordance with AASB 110 ‘Events after the Reporting Period’.
(a) The Commonwealth Treasurer announced a 3% increase in corporate tax rates on