Amesbury plc produces and distributes computer-controlled machinery. As accountant for the…

Amesbury plc produces and distributes computer-controlled machinery. As accountant for the company, you have been provided with the following information regarding the company’s activities in researching and developing products in the year ended 31 October 1993:

(1) Expenditure on developing a new computerised tool for a long-established customer has amounted to £150 000. The work is now well advanced and the customer is likely to authorise the start of commercial production within the next 12 months. The customer is reimbursing Amesbury plc’s costs plus a 10% mark-up. To date the company has received £70000 having invoiced £100000 for agreed work done.

(2) A review of the company’s quality control procedures has been carried out at a cost of £100 000. It is considered that the new procedures will save a considerable amount of money in the testing and analysis of existing and new products.

(3) The development of Product M479 has reached an advanced stage. Costs in the year ended 31 October 1993 amounted to £400 000. In addition there has been expenditure on fixed assets required for the development of this product amounting to £120 000 of which £60 000 was incurred in the year ended 31 October 1992. The fixed assets have a five-year life with no residual value and are depreciated on the straight-line basis with a full year’s depreciation in the year of acquisition.

 Market research, costing £20 000, has been carried out and this indicates the product will be commercially viable although commercial production is unlikely to start until April 1994. The company expects that Product M479 will make a significant contribution to profit.

(4) Commercial production started on 1 June 1993 for Product A174. The costs of developing this product had been capitalised as follows:

The company has taken out a patent which will last for ten years. The associated legal and administrative expenses amounted to £10000.

Actual and estimated sales for Product A174:

After 31 October 1996 the company’s market share and profitability from the product are expected to diminish significantly due to the introduction of rival products by


(5) It is company policy to capitalise development expenditure wherever possible.


Prepare all relevant extracts of the published financial statements for the year ended 31 October 1993 in accordance with current accounting standards and legislation, explaining your treatment of items (1) to (4).

Note: You are not required to prepare extracts of the cash flow statement or the directors’ report.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!