Advanced Financial Accounting Assessment
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Added on 2020-05-16
Advanced Financial Accounting Assessment
Added on 2020-05-16
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Running head: ADVANCED FINANCIAL ACCOUNTINGAdvanced financial accountingName of the universityName of the studentAuthors note
1ADVANCED FINANCIAL ACCOUNTINGTable of ContentsAssessment Task Part A:.................................................................................................................2Requirement i).................................................................................................................................2Requirement ii)................................................................................................................................2Requirement iii)...............................................................................................................................2Requirement iv)...............................................................................................................................3Requirement v)................................................................................................................................3Requirement vi)...............................................................................................................................4Requirement vii)..............................................................................................................................4Requirement viii).............................................................................................................................5Assessment Task Part B:.................................................................................................................5Requirement i).................................................................................................................................5Requirement ii)................................................................................................................................6Requirement iii)...............................................................................................................................7Requirement iv)...............................................................................................................................7Requirement v)................................................................................................................................8References list:...............................................................................................................................10
2ADVANCED FINANCIAL ACCOUNTINGAssessment Task Part A: Requirement i) Credit Corp group has conducted impairment testing annually for goodwill and otherintangible assets. Recognition of provision of impairment is done as indicated by objectiveevidence that impairment of trade receivables are done. Goodwill is tested for the impairment asindicated by change in circumstances or events. Recognition of trade receivables are done atfair value by deducting any amount of impairment loss attributable to that particular asset.Moreover, impairment recognition is done as indicated by objective evidences of conductingimpairment of assets (Creditcorp.com.au 2017). In the current financial year, organization hastested goodwill and other intangible assets for the purpose of impairment.Requirement ii) Allocation of goodwill is done to the municipal collections operating unit of the groupfor the purpose of impairment testing. The lowest level with the group is represented byoperating unit at which the monitoring of goodwill is done for the purpose of internalmanagement. Assessment of impairment is done by group at least on annual basis. Recognitionof impairment loss is done when the carrying value of assets is more than their recoverableamount. Assets recoverable amount is highest of the value in use or fair value minus cost to sell(Creditcorp.com.au 2017).
3ADVANCED FINANCIAL ACCOUNTINGRequirement iii)Credit Corp Group limited has not recorded any impairment expenses for the financialyear 2017 and 2016 respectively. The reason for organization not recording any impairmentexpenses is that in the current financial year, there was no impairment of any relevant assets andliabilities (Creditcorp.com.au 2017). However, only the impairment provision was made infinancial year 2017 in relation to the trade receivables.Requirement iv)When assessing the impairment of liabilities and assets, Credit Corp Group limited isrequired to determine the carrying value of liabilities and assets. In determining the carryingvalue, management of the group is required to make estimates and assumptions as they are notreadily available for other apparent sources. Estimation and assumptions are based on relevantfactors and historical experience. A reasonable expectation of future events is assumed fordetermining estimated figures that are based on economic data and current trend both within the
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