Sharst Link Company (SLC)is a Public Company and Must File

question 6

Essay

Sharst Link Company (SLC)is a public company and must file interim statements.SLC experienced the following events during the 3rd quarter of 20X9:
1.A large marketing plan was rolled out for a new product costing $9,000,000.The plan is expected to drive sales for the next four quarters.
2.A law suit was settled and the company must pay $15 million within the next 90 days.There was no payment made by the end of the 3rd quarter.In previous quarters,there was no provision made for this settlement since it was determined to be not probable.
3.Goodwill was tested for impairment and determined to have an impairment loss of $10 million.
4.In the previous interim period,due to a significant drop in the selling price of the inventory,the inventory was written down to its net realizable value $9 million from a cost of $10 million.In this quarter,the inventory is still on hand and the circumstances have again changed,resulting in the net realizable value increasing to $12 million.
5.Customers earn volume rebates when annual sales volumes exceed $6 million.This is a contractual agreement that the company has made to pay rebates of 4% on total sales for the year once the amount of $6 million is achieved.Currently,there were sales of $2 million to one customer for the quarter.In each of the previous quarters,sales of $1.5 million had been made to this customer.It is expected that sales of $2 million will be made in quarter 4 to this customer also.
Required:
For each event,indicate the impact on the interim statement for the 3rd quarter using the guidance required by IAS 34.

Grasp the principles that govern the operations of the ego and id.

Appreciate the historical and ongoing impact of Freud's theories on the development of psychology.

Describe the stages of psychosexual development and the concept of fixation.

Comprehend the role of the unconscious in influencing human behavior.

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Definitions:

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English Law

The legal system of England and Wales, which is based on common law principles.

Disposition

The final arrangement or handling of a deceased person's body, such as burial, cremation, or donation to science.

Decedent's Estate

The legal term referring to the property, assets, and liabilities left behind by an individual after death.