You are the Senior Financial Accountant of Smarties (Pty) Ltd – a distributor of party foods and sweet treats. You recently recruited a Junior Accountant, Ms Jelly Pretzel, to assist you with your duties and you are in the process of training her to assist you in preparing the financial statement for the year ended 30 June 2021. During your training, Miss Pretzel told you “I remember learning about the International Financial Reporting Standards and the Conceptual Framework in my second‐year accounting module at university, but I don’t really see how that is relevant to Smarties (Pty) Ltd”. Required: Briefly explain to Miss Pretzel why a regulatory reporting framework is required for preparing financial information.
You are the Senior Financial Accountant of Smarties (Pty) Ltd – a distributor of party foods and sweet treats. You recently recruited a Junior Accountant, Ms Jelly Pretzel, to assist you with your duties and you are in the process of training her to assist you in preparing the financial statement for the year ended 30 June 2021. During your training, Miss Pretzel told you “I remember learning about the International Financial Reporting Standards and the Conceptual Framework in my second‐year accounting module at university, but I don’t really see how that is relevant to Smarties (Pty) Ltd”. Required: Briefly explain to Miss Pretzel why a regulatory reporting framework is required for preparing financial information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You are the Senior Financial Accountant of Smarties (Pty) Ltd – a distributor of party foods and
sweet treats. You recently recruited a Junior Accountant, Ms Jelly Pretzel, to assist you with your
duties and you are in the process of training her to assist you in preparing the financial statement
for the year ended 30 June 2021.
During your training, Miss Pretzel told you “I remember learning about the International Financial
Reporting Standards and the Conceptual Framework in my second‐year accounting module at
university, but I don’t really see how that is relevant to Smarties (Pty) Ltd”.
Required:
Briefly explain to Miss Pretzel why a regulatory reporting framework is required for
preparing financial information.
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