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Accounting Standards and Regulation - Doc

   

Added on  2021-06-18

7 Pages1692 Words29 Views
Finance
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qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzAccounting standards andregulations
Accounting Standards and Regulation - Doc_1

Vicinity Centre VCXExecutive SummaryIn this report, the affairs pertaining to the administrative and financial affairs of Vicinity VCX have been put to discussion. The company is engaged in real-estate investment trust andis listed on the ASX. In addition, the company is engaged in rental of property in the pattern of building and land that is being provided to the tenants. Moreover, the influence of variations in retail market has been discussed with the help pf this report.2
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Vicinity Centre VCXAnswer - aAASB 140 covers the accounting treatment of the investment property and focuses on measuring, recognizing and disclosing it. It is a property not purchased to put on sale later. Investment property mainly denotes land and buildings that are acquired and maintained for making money in the form of rent or for the capital appreciation or both. The interest of property that forms the part of investment property accounts is a situation where the basic criteria of comprising investment property measurement are calculated on cost or fair value model (Davies & Crawford, 2012). Adherence to requirements mentioned in AASB 140 is required for such property interest which encourages immense disclosure processes as and when required.Investment property is construed as an asset in the group’s finances subjected to the fulfillment of the conditions mentioned below-1) In order to ensure reliability of the parties on the property, it is required to calculate its cost in an appropriate manner.2) The properties must account for monetary benefits and also remain held by the group in the future needs to be ensured. For the earning of rental income, Vicinity Centre VCX deals in leasehold and freehold properties like buildings and land. The costs incurred in order to procure the properties and their original purchase expenses are considered the total amount at which these properties are recorded by the company. This means the company has a policy of recording its property at the cost plus its original purchase expenses. The overall cost of the property also includes anymaterial work in progress. Also, the current value of the property owned by the company is determined by the valuation experts and calculated on the basis of such values. This ensures that the properties are recorded at their true and legitimate numbers (Carmichael & Graham, 2012). Vicinity Centre VCX Board and Investment committee too regulated the same valuation. Thesame process also engages the major executives of the company. Also, the company takes necessary measures to review this process timely and regularly. Mentioned below are the necessary treatments in various scenarios-3
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