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(pdf) Corporate Accounting Assignment Sample

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Added on  2021-06-17

(pdf) Corporate Accounting Assignment Sample

   Added on 2021-06-17

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Running head: CORPORATE ACCOUNTINGCorporate AccountingName of Student:Name of University:Author’s Note:
(pdf) Corporate Accounting Assignment Sample_1
CORPORATE ACCOUNTING1Table of ContentsIntroduction........................................................................................................................2Discussion..........................................................................................................................2Conclusion.........................................................................................................................4References.........................................................................................................................5
(pdf) Corporate Accounting Assignment Sample_2
CORPORATE ACCOUNTING2IntroductionThe fundamental impairment guidelines states that asset cannot be carried asper the financial report position pertaining to its recoverable amount which is higher ofthe “asset's fair value less costs to sell and its value in use”. As discussed by Mohd-Saleh and Omar (2014), the carrying value of an asset is seen to be compared with therecoverable amount along with asset which is impaired when the vendor fair value lesscosts to sell exceeds the actual value in use of the asset. In such a situation impairmentof any form damage is allocated in the asset with impairment loss being noted in profitor loss.DiscussionIt needs to be discerned that in general, all assets are focusedd to impairmentexamination which are tested for impairment when there is a significant indication thatthe asset may be impaired. This is done despite of the fact that certain assets such as“goodwill and indefinite-lived intangible assets” are seen to be confirmed for lossannually even if there is no indicator for impairment. It needs to be further understoodthat the recoverable amount is calculated at the individual asset level. However,commonly an asset seldom generates cash flows independently of other assets and“mostly these are tested for impairment in groups of assets also known as cashgenerating units (CGU)”. It is seen that the CGU is the smallest identifiable group ofassets which is seen to generate the “cash inflows” which are largely nondependent onthe cash inflows from other assets or group of assets (Caruso, Ferrari and Pisano2016).As stated by Darrough, Guler and Wang (2014), The goodwill acquired during thecourse of business amalgamation is allotted to the acquirers CGUs which areanticipated to benefit significantly from business combination. Moreover, the largestgroup of CGUs allowed for goodwill impairment testing is considered as the lowest levelfor the operating segment. In addition to this, as per the compliance with “IAS 36,Impairment of Assets, impairment testing of goodwill” needs to be assessed at a level
(pdf) Corporate Accounting Assignment Sample_3

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