Changing depreciation methods Jason Domes Ltd is a large department store that has used the...

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Changing depreciation methods Jason Domes Ltd is a large department store that has used the straight-line depreciation method since the company was first formed. For the year ended 30 June 2013. the company made record profit and management expected these high profits to continue at least into 2014 and although economists were generally predicting an economic slowdown and a subsequent tail in profits in 2016 and 2017. The general manager, Jason Domes, approached the accountant. Megan Mild, and asked her it she could find a way to reduce the profit in the next couple of years and transfer it to 201(i and 2(117 when things may not be going so well. 'This would give us consistent profits over the nest few years and keep our shareholders happy,' said Jason. Although Megan did not feel that Jason's reason for the change was justified. she was concerned that her contract with the company would not be renewed if she upset the general manager Ana some consideration, Megan decided to change the depreciation method from the straight-line method to the sum-of-years-digits method. Megan did not disclose this change in the notes to the financial statements as she felt that the reason given by Jason would not give a good Required A. Who are the stakeholders in this situation? B. What ethical issues, if any, arise in this situation? C. How does the change in accounting methods by Megan meet the objectives set out by Jason ' D. Do Megan's actions comply with the requirements of IAS 16/AASB 116?

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Robert · Accepted Answer

Question 1 
(a) Given that K is a real invertible symmetric nxn matrix. Define a bilinear  
Since G = {A   Mn(R)  F|Ax,Ay| = F[x,y] for all x,y    R
n  
And G is invertible so, 
G = { A   Mn(R) | A
TKA = ATAK = IK = K}  
Here G is an invertible nxn matrix so,

Changing depreciation methods Jason Domes Ltd is a large department store that has used the straight-line depreciation method since the company was first formed. For the year ended 30 June 2013. the...

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