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Corporate Financial Accounting and Reporting Assignment

   

Added on  2020-05-16

8 Pages1456 Words28 Views
Running head: CORPORATE ACCOUNTING AND REPORTINGCorporate Accounting and ReportingName of the Student:Name of the University:Author’s Note:Course ID:

CORPORATE ACCOUNTING AND REPORTING1Table of ContentsPart A:................................................................................................................................2Part B:................................................................................................................................6References.........................................................................................................................7

CORPORATE ACCOUNTING AND REPORTING2Part A:The major impairment principle is that an asset may not be carried within balancesheet statement other than its recoverable amount that is more than an asset fair valuesubstracted from value in use and cost of sell. An assets carrying amount is comparedwith its recoverable amount along with hat an asset is impaired while the former ishigher than the later (Bond, Govendir and Wells 2016). Certain impairment isassociated with the asset at a time in which impairment loss is realized within loss orprofit. Every asset is subject to the impairment review which is considered forimpairment test within which there is an indication that an asset can get impaired.Conversely, there are several assets such as infinite goodwill and intangible assets thatis tested for annual impairment while there is lack of any impairment indicator. Certainrecoverable amount computation is conducted at a personal asset level. In addition, anasset results in independent cash flows of other assets along with a large number ofassets those are tested for classes of assets impairment elucidated as a part of cashgenerating unit (Linnenluecke et al. 2015). As per “Paragraph 104 of AASB 136”, impairment loss recognition for a cashgenerating unit might be conducted in case the unit’s recoverable amount is decreasedin contrast to the carrying amount associated with that unit. Allocation of the impairmentloss is conducted in order to decrease the assets carrying amount in consideration tothe units within two sequential orders. One among them is the carrying amountassociated with the goodwill associated with the cash generating unit that can be

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