Sparky Limited (SPL)is a Public Company and Must File Interim

question 24

Essay

Sparky Limited (SPL)is a public company and must file interim statements.SPL experienced the following events during the 2nd quarter of 20X11:
1.In the 1st quarter,an impairment loss on goodwill was recognized in the amount of $5 million.The circumstances leading to this loss have now changed,and the value of the goodwill is once again above its original cost.
2.During the 2nd quarter,the company shut down its manufacturing plant for annual maintenance.The annual maintenance costs totalled $7.5 million in the quarter.
3.As per a lease agreement,the company must pay additional rent charged at 3% of sales if annual sales are greater than $12 million.The contingent rent is payable on the total annual sales.The company reported sales in the 1st quarter related to this leased location of $3 million and in the 2nd quarter sales totalled $4 million.It is expected that sales for the 3rd and 4th quarter will be $5 million and $3 million,respectively.
4.The company made a large sale to a new customer for $6 million.This sale relates to a contract of services that will be provided over the next nine months,which commences in the first month of the 2nd interim period.
Required:
For each event,indicate the impact on the interim statement for the 3rd quarter using the guidance required by IAS 34.

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Definitions:

Duty To Accommodate

Refers to the obligation of employers to modify the work environment or the job itself to enable employees with disabilities to work effectively.

Psychological Harassment

This is a form of harassment involving unwanted conduct that affects an individual's dignity or psychological integrity, often creating a hostile or intimidating environment.

Systemic Discrimination

Discrimination practices embedded in the policies and practices of institutions, resulting in disadvantage to certain groups of people.

Word-Of-Mouth

Informal communication among consumers about the characteristics and quality of a product, service, or brand.