Advance Financial Accounting- Doc

Running head: ADVANCE FINANCIAL ACCOUNTING
Advance financial accounting
Name of the student
Name of the university
Author note

1ADVANCE FINANCIAL ACCOUNTING
Table of Contents
Part A.........................................................................................................................................2
Answer to (i)..........................................................................................................................2
Answer to (ii).........................................................................................................................2
Answer (iii)............................................................................................................................3
Answer to (iv)........................................................................................................................3
Answer to (v)..........................................................................................................................4
Answer to (vi)........................................................................................................................4
Answer to (vii).......................................................................................................................5
Answer (viii)..........................................................................................................................5
Part B..........................................................................................................................................6
Answer to (i)..........................................................................................................................6
Answer to (ii).........................................................................................................................6
Answer to (iii)........................................................................................................................6
Answer to (iv)........................................................................................................................7
Answer to (v)..........................................................................................................................7
Reference....................................................................................................................................8

2ADVANCE FINANCIAL ACCOUNTING
Part A
ARB Corporation is the largest distributor and manufacture for 4x4 accessories in
Australia. The company has wide presence in international aspects in addition to the office in
USA and the export network extended over more than 100 countries all over the world. The
company is mainly focussed on practicality, reliability and quality.
Answer to (i)
Assets tested for impairment are as follows –
 Loans and the receivables – the receivables and loans were tested for impairment and
the loss if any are recognizes in the statement of profit and loss.
 Goodwill – goodwill were not amortised but were tested for the impairment
 Property, equipment and plant – fixed assets like plant, property and equipments are
annually tested for impairment (Linnenluecke et al., 2015).
Answer to (ii)
The company conducts the impairment test in accordance the requirement of AASB
136 on impairment of assets. Though goodwill and other non-financial assets are not
amortised, it is annually tested for the impairment. It is tested more often if any indication
exists there that it may get impaired (Khokan Bepari, Rahman & Taher Mollik, 2014).
However, the fixed assets like plant, equipment and property are annually tested for
impairment. If any warning for impairment exists, the asset’s recoverable amount is
determined.