Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Refer to Source C in the insert.
(a(i))[5]

Explain, with reference to the relevant International Accounting Standards, how information 4 should be accounted for (support your answer with calculations).

(a(ii))[4]

Explain, with reference to the relevant International Accounting Standards, how information 5 should be accounted for (support your answer with calculations).

(b)[6]

Prepare a statement setting out the adjusted retained earnings at 31 December 2022.

(c)[7]

Prepare an adjusted statement of financial position as at 31 December 2022.

(d)[3]

State three responsibilities carried out by an external auditor.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: Impairment of assets under IAS 36

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