Review the accounting standards AASB116 (Property, Plant and Equipment), AASB117 (Leases)

Review the accounting standards AASB116 (Property, Plant and Equipment), AASB117 (Leases), AASB 136 (Impairment of Assets), and AASB 138 (Intangible Assets) in answering the following questions.Review the accounting standards AASB116 (Property, Plant and Equipment), AASB117 (Leases), AASB 136 (Impairment of Assets), and AASB 138 (Intangible Assets) in answering the following questions.Required:(a) What are the typical sections and common format for presenting accounting standards? 2 marks(b) Describe briefly the three issues regarding the preparation of financial statements that these accounting standards provide guidance to. 3 marksQuestion 3 Total 8 marksYou are the accountant of Pears R Us Pty Ltd, a company that produces pear fruit juice. The Managing Director enquires as to why you have not included the employees of Pears R Us Pty Ltd as assets and a provision for the overhaul of the machinery as a liability in the financial statements for the year ended 30 June 2012. Required:Use the AASB Framework’s definition and recognition criteria of assets and of liabilities to explain to the Managing Director why you have excluded employees and the provision for the overhaul of machinery from the financial statements. Question 4 Total 8 marksYou are presented with the following information for two independent situations. (a) Rhonda started a family business, Super Clean Carpet Pty Ltd, seven years ago. The shareholders are Rhonda, her husband and her two twin boys who are 10 years old. Rhonda’s mother manages the day-to-day operations of the company. Super Clean Pty Ltd is a very successful business and does not have any liabilities currently. (b) Deep Green Ltd manufactures solar panels. The company only has two competitors in Australia. The company has 88 shareholders and 260 full-time employees currently. The net sales revenue for the financial year ending 30 June 2012 was $22 million. Unfortunately the company lost a major customer on 15 June 2012 and hence received solar panels with a selling price of $4 million back. The carrying value of assets at 30 June 2012 was $9 million and the accumulated depreciation was $4 million. Required:For each of the independent situations identified above, consider and conclude whether the entity is a reporting entity and whether it is required by the Corporations Act to prepare financial statements. Overall presentation and layout of assignment 3 marksUse the question numbers to indicate which question you are answering. You should refer to the relevant sections in the Guide for Students for information on researching a topic. You may also wish to seek assistance from the Communications Learning Centre (CLC) for additional assistance on how to research and write an assignment. The assignment should be prepared using a Word Processing Package. Use the following formatting style: Times New Roman font, 12 point font size and 1.5 line spacing. Use italics only when you quote from another source.

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