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HA 3011 Advanced Financial Accounting of Sai Global limited

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Advance Financial Accounting (HA 3011)

   

Added on  2020-05-28

HA 3011 Advanced Financial Accounting of Sai Global limited

   

Advance Financial Accounting (HA 3011)

   Added on 2020-05-28

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Running head: ADVANCED FINANCIAL ACCOUNTINGAdvanced Financial AccountingName of the Student:Name of the University:Author’s Note:Course ID:
HA 3011 Advanced Financial Accounting of Sai Global limited_1
1ADVANCED FINANCIAL ACCOUNTINGTable of ContentsPart A:..............................................................................................................................................2Part (i):.........................................................................................................................................2Part (ii):........................................................................................................................................2Part (iii):.......................................................................................................................................3Part (iv):.......................................................................................................................................4Part (v):........................................................................................................................................4Part (vi):.......................................................................................................................................5Part (vii):......................................................................................................................................5Part (viii):.....................................................................................................................................5Part B:..............................................................................................................................................6Part (i):.........................................................................................................................................6Part (ii):........................................................................................................................................7Part (iii):.......................................................................................................................................7Part (iv):.......................................................................................................................................8Part (v):........................................................................................................................................8References:......................................................................................................................................9
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2ADVANCED FINANCIAL ACCOUNTINGPart A:Part (i): As per the financial statements report of Sai Global limited for the year 2015,impairment testing for several asset classes was carried out. Several intangible assets withgoodwill are not amortized and they are further tested for annual impairment. In case frequencyis more than once annually because of differences within situations or events it indicates thatassets might are impaired and are mentioned within the annual report at less cost withaccumulated impairment loss (Amel-Zadeh et al. 2016). Some different assets like the tradereceivables along with property, plant and equipment with inventory are taken into impairmenttesting while there is an indication that the assets carrying amount might not be recoverable.Part (ii): Sai Global limited carries out a two-step process in impairment testing. The first step is toalign by the fair value of reporting unit within its carrying value that includes the goodwill. Incase the operating unit’s carrying value is higher in contrast to the fair value, the second stepassociated with impairment testing must be conducted for ensuring the amount of impairmentloss in case it takes place (Carlin, Finch and Manh Tran 2014). The second step explains theimpaired fair value of reporting unit along with the carrying amount associated with the unit. Incase the implied fair value is lesser in comparison to the carrying amount, certain charge ofimpairment is realized within the amount related to that excess. Such realized loss cannot bemore than the asset’s carrying amount.
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3ADVANCED FINANCIAL ACCOUNTINGPart (iii): The company experienced the below impairment expenditures for the end of the periodon 30th June, 2015.Goodwill and Intangible AssetsDuring such period, the company has explained a total impairment of $59841 ($77748 -$17907), out of which $841 was stated within the software, $ 9000 was mentioned for theconsumer contracts and $ 50000 was mentioned for the IRU. Conversely, goodwill and brandsare not accountable for the impairment (Benson et al. 2015). Intangible Assets and GoodwillTrade ReceivablesIn the year 2015, the company represented an allowance for the impairment loss of $2563 in the year 2015 that was recorded to be $ 1748 in the year 2014.
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