Superstore Ltd, Funland Ltd, Splash Ltd, Firefly Ltd and Flash Ltd
Question 1 Financial statement disclosures You are the financial accountant for Superstore Ltd, and are in the process of preparing its financial statements for the year ended 30 June 2018. Whilst preparing the financial statements, you become aware of the following situations: Superstore Ltd provides a warranty on goods sold for a period of 12 months from the date of sale. The company has, in the past, always recognised a provision for warranties equal to 5% of sales made during the year. Due to increasing warranty costs and the number of goods returned under warranty in previous years, the directors met during the financial year (ended 30 June 2018), and decided to increase the provision to 8% of sales made during…
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