5 Erin Danielle, the bookkeeper for Liverpool Ltd., has been trying to determine the correct statement of financial position for the company. The...

3) Chapter 1 in the textbook claims that a Statement of Retained Earnings is a required financial statement. Do you find this Statement in the appendix? If not, what statement is presented instead, and can you gather from it the same information shown on a Statement of Retained Earnings? Explain your answer.

c) The concept of materiality is defined as an entity specific application of the fundamental qualitative characteristic of relevance. Discuss how you think TSMC applied this concept to the non-current asset category of Property, Plant and Equipment.

Question Two:

Refer to CTP1.5 on page 1-45, but instead of a memo, make a corrected Balance Sheet using the same format used by TSMC in Appendix A and as shown in the solution to E1.13--see Canvas, tutorial 1 solutions. (Also follow the proper form—correct dollar sign placement--as shown in the Canvas solution.) Important additional information: a) assume that the Notes Payable is due 1 March 2022: b) "Dividends" is different from "Dividends Payable"--you may assume that the $2,000 of dividends were paid; c) the company uses a Retained Earning account; d) profit for the period was $3,000; and the Cash account should have a balance of $12,000 instead of the $9,000 shown in the textbook.

Question Three:

Problem 1.5 on page 1-43, parts a. and b. only, but for part b., make a Statement of Changes in Equity instead of a Retained Earnings Statement. (Note: In this course, we will use the term "Profit" instead of "Net Income".) An example of a Statement of Changes in Equity is on page 12-29. For yours, only include the applicable columns.

Question Four:

Google XRB and go to their site. Click on "About XRB."

a) Click on "Who we are" and summarise who the XRB is.

b) Click on "What we do". What is meant by international convergence?

c) Click on "How are our standards set?", then on "International For-profit Accounting Standards", and, referring to the diagram, summarise how the NZASB is involved in the standard setting process.

Attachment 1
Attachment 2

CT1.5 Erin Danielle, the bookkeeper for Liverpool Ltd., has been trying to determine the correct statement offinancial position for the company. The company's statement of financial position is shown below.Liverpool Ltd.Statement of Financial PositionFor the Month Ended December 31, 2020AssetsLiabilitiesEquipmentf25,500 Share capital-ordinary E26,000Cash9,000 Accounts receivable(5,000)Supplies3,000 Dividends(2,000)Accounts payable(8,000) Notes payable10,500f29,500L29,500InstructionsExplain to Erin Danielle in a memo why the original statement of financial position is incorrect, and whatshould be done to correct it.