Question

Identify/find the corresponding IAS/IFRSs’ for the IPSASs’ listed in the table above, then write on at least 3 similarities and 3 differences between the respective standards

1 Presentation of Financial Statements

2 Cash Flow Statements

12 Inventories

17 Property, Plant & Equipment

33 First Time Adoption of Accrual Basis IPSASs

Question 2

Company X is located in the commercial sector of Trinidad and Tobago and has been operating from 1992. The company purchased office supplies from Florida Distributors Co. Ltd on May 12, 2016 that valued US$50,000.00. Company X pays US$20,000.00 by cash on May 31, 2016, US$25,000.00 by cheque on June 2, 2016, and then settled its bill by transferring the balance from its bank account directly into the bank account of the supplier on June 3, 2016.

 Record the transactions in the books of Company X using the cash basis?

 Record the transactions in the books of Company X using the accrual basis?

Answer 1

For first table is not available.

Solution 2:

Transactions in the books of Company X using the cash basis:

May 31, 2016 Office Supplies A/c DR. $ 20,000.00

To Cash A/c CR. $ 20,000.00

(Being office supplies purchased in cash)

June 2, 2016 Office Supplies A/c DR. $ 25,000.00

To Bank A/c CR. $ 25,000.00

(Being office supplies purchased through check)

June 3, 2016 Office Supplies A/c DR. $ 5,000.00

To Bank A/c CR. $ 5,000.00

(Being office supplies purchased through bank transfer)

Transactions in the books of Company X using the accrual basis

May 12, 2016 Office Supplies A/c DR. $ 50,000.00

To Cash A/c CR. $ 50,000.00

(Being office supplies purchased)