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Advanced Accounting Issues Assignment

   

Added on  2020-03-16

9 Pages2122 Words47 Views
Running head: ADVANCED ACCOUNTING ISSUESAdvanced Accounting IssuesName of the Student:Name of the University:Authors Note:

ADVANCED ACCOUNTING ISSUES1Table of ContentsQuestion 1:.................................................................................................................................2a) Depicting how the goodwill impairment charge reported above be disclosed in QBE’sfinancial statements:...................................................................................................................2b) Depicting whether QBE’s chairperson is considered an intangible asset, and adequatedisclosure is been depicted in their financial statement:............................................................3Question 2:.................................................................................................................................4a) Identifying the benefits that might accrue to Lion Nathan with sales and leasebacktransactions:................................................................................................................................4b) Depicting whether the related leases is finance or operating lease:......................................5c) Depicting whether Lion Nathan account for any profit or loss on the sale of the pubs:........5d) Depicting whether any change in depreciation could be seen if pubs are sold and thenleased back by Lion Nathan:......................................................................................................6Reference and Bibliography:......................................................................................................7

Question 1:a) Depicting how the goodwill impairment charge reported above be disclosed in QBE’sfinancial statements:The goodwill impairment is mainly considered a charge that is imposed byorganisation in the annual report when carrying value of the goodwill exceeds the fair value.In addition, the overall valuation of goodwill impairment is mainly considered an earningscharge that is recorded by the companies in their income statement. This record in the incomestatement is mainly conducted to identify whether goodwill is not able to demonstrate thefinancial results. Adams, Mezzullo and McManus (2015) mentioned that impairments chargedirectly allow the organisation to reduce the goodwill value according to the change in itsfuture financial gain. There are different ways in which the overall goodwill impairment chargescould be recorded in the annual report of QBE’s. In addition, theimpairment expenses are recorded in two statement of the annual report,which directly help in adjusting the fair value of an asset. The annualreport of QBE needs to needs to adjust goodwill impairment charge ofabout $600 million and one-time impairment charge of $150 million. Theimpairment charges need to be recorded in annual report of theorganisation, which could help in improving the financial viability of theorganisation. The relevant measure could eventually help in declining thegoodwill of QBE from its financial report. The overall onetime impairmentcharge of $150 million will mainly be deducted from the incomestatement, which could directly reduce the total profit for the year.

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