The financial controller of Happy Limited, (a technology company) has asked you, a trainee financial accountant within the company, for advice on how to account for various transactions that occurred after the financial year end date of 31 December 2016

The financial controller of Happy Limited, (a technology company) has asked you, a trainee financial accountant within the company, for advice on how to account for various transactions that occurred after the financial year end date of 31 December 2016.

REQUIREMENT:

Happy Limited has asked you to prepare report which addresses the following:

Part A:

(a) Outline the possible reasons why a company would not prepare its financial statements on a going concern basis.

(b) In accordance with MFRS 110 - Events after the Reporting Period, describe what is meant by 'event after the reporting period'.

(c) If a company receives information after the reporting period about conditions that existed at the end of the reporting period, explain how this information should be dealt with in the financial statements.