Advance Financial Accounting Assignment - Chandler Macleod Group Limited

Running head: ADVANCE FINANCIAL ACCOUNTING
Advance Financial Accounting
Name of the Student:
Name of the University:
Authors Note:

ADVANCE FINANCIAL ACCOUNTING
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Table of Contents
Assessment Task Part A:............................................................................................................3
i) Finding out from company’s annual report that assets that is used by the firm for testing its
impartment:................................................................................................................................3
ii) Depicting how impairment testing was conducted by the firm:............................................3
iii) Depicting whether the firm has recorded any impairment expenditure during the fiscal
year:............................................................................................................................................4
iv) Identifying the key estimates and assumption used for conducting the impairment testing:
....................................................................................................................................................5
v) Depicting whether any kind of subjectivity is involved in impairment testing and stating
how this subjectivity could influence outcome of impairment testing:.....................................5
vi) Depicting what was interesting, confusing, surprising or difficult to understand about the
impairment testing:.....................................................................................................................6
vii) Depicting new insights about the impairment test conducted by the company:.................6
viii) Commenting on the fair value measurement:.....................................................................7
Assessment Task Part B:............................................................................................................7
i) Explaining why the chairperson of IASB believes that accounting standard for lease did not
reflect economic stability:..........................................................................................................7
ii) Depicting why under former accounting measure liabilities were up to 66 times greater
than debt reported on their balance sheet:..................................................................................8
iii) Depicting why under former accounting standard there was no level playing field between
some airline companies:.............................................................................................................9
iv) Depicting the case for unpopularity of the new accounting standard for lease:...................9
v) Depicting the possible reason, why it is said that new visibility of all lease will lead to
better investment decision:.......................................................................................................10

ADVANCE FINANCIAL ACCOUNTING
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Reference and Bibliography:....................................................................................................12

ADVANCE FINANCIAL ACCOUNTING
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Assessment Task Part A:
i) Finding out from company’s annual report that assets that is used by the firm for
testing its impartment:
The company has been conducting impairment testing on intangible assets, goodwill,
customer relationships, Branding, project development cost in software. Chandler Macleod
Group Limited has been conducting impairment test on all the above-mentioned categories,
which helps in identifying the overall loss incurred by the organization during the fiscal year.
This detection of the impairment loss directly allows the company to adjust their assets
according to its actual value presented in the market. impairment testing of goodwill and
intangible assets with indefinite lives are conducted by Chandler Macleod Group Limited,
which helps in allocating goodwill to individual business units (Chandlermacleod.com 2018).
This impairment testing directly helps in detecting the losses that is incurred by the
organization in valuation during the fiscal year. the cost related project development and
software are directly adjusted with the help of impairment testing.