Chapter 1
Recognition and Measurement
26
AP-6B (
3
)
Punta Famta Inc. is a large distributor of carbonated drinks operating in North America. The
CFO is very detail oriented and when she discovered a $28.00 difference in the year-end cash
reconciliation report, she instructed a team of three accountants to find the discrepancy by
reviewing the annual cash ledger. The discrepancy was discovered and corrected by the end
of the week, with a cumulative 60 hours spent at $75.00 per hour. Explain what basic concept
the CFO is missing.
AP-7B (
4
)
Tallageda Racing Ltd. has the following assets as of December 31, 2016.
Building
$800,000
Accumulated Depreciation
350,000
Cash
200,000
Accounts receivable
120,000
Interest receivable
14,000
Inventory
65,000
Required
a) Arrange the items in the liquidity order that is commonly presented on the statement of
financial position under IFRS.
