1)WHAT ARE THE OBJECTIVES AND SCOPE FOR IFRS 17. 2)are various costs that are found in organizations: Required:

Question

1)WHAT ARE THE OBJECTIVES AND SCOPE FOR IFRS 17. 2)are various costs that are found in organizations: Required: Classify each cost as being either variable or fixed with respect to the number of units sold. Also, classify each cost as either a selling and administrative cost or a product cost. Cost Behaviour Cost Cost Item 1. Apples processed and canned by Del Monte Corporation 2. Advertising by a dental office 3. Shipping canned apples from a Del Monte plant to customers. 4. Insurance on IBM's manufacturing facilities. 5. Commissions paid to London Drugs salespeople 6. Steering wheels installed in BMWs. 7. Depreciation of factory lunchroom facilities at a General Electric plant 8. Insurance on Samsung's corporate office 9. Salary of a supervisor overseeing production of circuit boards at Hewlett-Packard 10. Hamburger buns in a Burger King outlet

Help In Homework · Accepted Answer

1)Objectives of IFRS 17: IFRS 17 deals with Insurance contracts covering the recognition and measurement, presentation and disclosure of the same in the financial statements. The objective of this standard is to ensure that the company/entity complies and provides relevant information with respect to such contracts which shall help the users of financial statements to assess the impact of such contracts on the company's financial statements including the cash flow statement. Scope of IFRS 17: IFRS 17 applies to all types of insurance contracts (i.e. Life insurance, non-life insurance, direct insurance and also re-insurance) regardless of the entity type which are issuing them. It also applies to certain guarantees and also financial instruments which has discretionary participation features. There are few scope exceptions which shall apply if these contracts are covered under IFRS 15 Revenue from contracts and if meets certain conditions. 2) No Cost Item Cost Behaviour Cost 1 Apples processed and canned by Del Monte Corporation Variable Product Cost 2 Advertising by a Dental Office Fixed Selling and Administrative Cost 3 Shipping Canned apples from a Del monte plant to customers Variable Selling & Administrative Cost 4 Insurance on IBMs Manufacturing Facilities Fixed Product Cost 5 Commission paid to London Drugs Sales People Variable Selling and Administrative Cost 6 Steering wheels installed in BMW's Variable Product Cost 7 Depreciation on Factory Lunchroom facilities at a

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1)WHAT ARE THE OBJECTIVES AND SCOPE FOR IFRS 17

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Archived Solution

No	Cost Item	Cost Behaviour	Cost
1	Apples processed and canned by Del Monte Corporation	Variable	Product Cost
2	Advertising by a Dental Office	Fixed	Selling and Administrative Cost
3	Shipping Canned apples from a Del monte plant to customers	Variable	Selling & Administrative Cost
4	Insurance on IBMs Manufacturing Facilities	Fixed	Product Cost
5	Commission paid to London Drugs Sales People	Variable	Selling and Administrative Cost
6	Steering wheels installed in BMW's	Variable	Product Cost
7	Depreciation on Factory Lunchroom facilities at a General Electric Plant	Fixed	Product Cost
8	Insurance on Samsung Corporation Office	Fixed	Selling & Administrative Cost
9	Salary of supervisor overseeing production of circuit boards at Hewlet Packard	Fixed	Product Cost
10	Hamburger buns in a Burger king outlet	Variable	Product Cost