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Accounting Theory - Sample Assignment

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Added on  2021-06-17

Accounting Theory - Sample Assignment

   Added on 2021-06-17

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Running head: ACCOUNTING THEORYAccounting TheoryUniversity NameStudent NameAuthors’ Note
Accounting Theory - Sample Assignment_1
2ACCOUNTING THEORYSolutionAustralian Dairy FarmAs per the annual report of the firm, Plant, Property and Equipment is registered to be$25973270 in 2017 and $26,271,715 in 2016. Analysis of accounting Policies used by the firm reveals the fact that each class of plant,property and equipment is necessarily carried out at cost or else as suggested, relatively less,where appropriate, accumulated depreciation as well as impairment loss. In particular, it canbe said that plant as well as equipment are mentioned at cost less accumulated depreciation aswell as any accumulated depreciation and impairment losses (Scott, 2015). Fundamentally,the carrying amount of particularly plant, property as well as equipment is analysed yearly bydirectors in order to make certain that it is not over and above recoverable amount. As such,recoverable value of necessarily plant, property as well as equipment is more than theapproximated recoverable amount. In this case, the carrying amount also gets written downinstantaneously to the approximated recoverable amount. In addition to this, impairmentlosses also get identified in case of profit (Scott, 2015). Again, the amount that is depreciableof different fixed assets counting plant, property as well as equipment is necessarilydepreciated on a straight line basis. Capilano Honey LimitedAnalysis of annual report of the firm reflects the fact that land as well as buildings isnecessarily valued at fair value (that is essentially the particular amount for which the specificasset might perhaps be exchanged mainly between knowledgeable parties). In this case, theplant as well as property is enumerated on the basis of cost less accumulated depreciation aswell as losses of impairment (Scott, 2015). In this case as well, the carrying amount is
Accounting Theory - Sample Assignment_2

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