Assignment Details: CICI Ltd question

The following items of property plant and equipment were included in the records of CICI Ltd 1. February 2019:

During the year ended 31st January 2020, the following occurred: –

• Buildings represent €348,000 of the amount in Feb 2019. The buildings were bought new on la Feb 2019.
• On the 1st February 2019, an item of a plant costing €88,000 on 1st July 2017 is now recognized as having a useful life of only five years in total.
• A new plant was acquired for €100,000 on l August 2019 and the company received a government grant of €20,000 towards the cost. The company uses the deferred credit method in accounting for government grants.

• On 30th September 2019, a vehicle that was originally purchased for €19,000 during the year ended 31st January 2018 was traded in at a value of €13,000 against a new model costing €28,000.
• Fixtures which had cost €22,000, and were fully depreciated, were scrapped in November 2019.
• During November the company incurred an expenditure of €85,000 on developing projects which are considered technically feasible and commercially viable.

The following is relevant:

1. The company’s policy for depreciation is to use the straight-line method at the following rates:

2. The company charges a full year’s depreciation/amortization in the year of acquisition of a non- current asset and no depreciation in the year of disposal.

Requirement:

Write a report to the directors of Cici Ltd outlining the treatment of each item above as per the relevant international accounting standard and prepare the extracts for the company’s published financial statements for the year ended 31st January 2020.

Assignment Details:

The Irish government must respond to the severe economic downturn caused by the COVID-19 pandemic; such a response may act to stimulate the economy or promote living within our means as set out by the theories of Keynesian Economics and Economic Liberalism respectfully.
Compare and contrast these different potential responses in at least four sectors of the Irish economy.

Learning outcomes:

LO2. Explain the broad principles of macroeconomics and the role of government intervention
LO3. Describe the main features of the Irish economy
LO4. Interpret standard economic models of the market and of market intervention

In your answer you should:

1. Describe the Irish economy using the circular flow of income;
2. Briefly outline the theories of economic liberalism and Keynesian economics;
3. Use the model of demand and supply to explain how markets work;
4. Discuss and describe how international trade can affect an economy’s potential output;
5. Debate the role of the welfare state;
6. Analyze potential labor market changes;
7. Analyze any potential trade-off between unemployment and

Your answer should have an introduction, main body, and conclusion. While some attention of your answer should be focused on the theoretical definition, the main focus of your answer should concentrate on the extent to how the state may act and the economic arguments both for and against these actions by using the course material and external evidence such as CSO data.
It is important that you answer the question directed at you. In essence, the question is seeking a response to contrasting arguments around government intervention in the Irish economy. Your answer should be a well-balanced economic argument identifying the various options open to the government.
Diagrams, tables, graphs, and their descriptions are to be attached as appendixes and are excluded from the overall word count, you should reference them in your answer.
Your answer must contain a reference list in a separate section at the end of your answer. References and the reference section are also excluded from the word count.