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Corporate Accounting and Reporting Doc

   

Added on  2021-06-17

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

1CORPORATE ACCOUNTING AND REPORTINGTable of ContentsPart “A” Answer:................................................................................................................2References:........................................................................................................................6

2CORPORATE ACCOUNTING AND REPORTINGPart “A” Answer:The vital objective of the impairment principle acts as an asset might not beconsidered in the balance sheet rather than the recoverable amount which is increasedthan the assets fair value deducted from the sell and “value in use” (Bond, Govendir andWells 2016). An assetcarrying amount is contrasted in comparison to the recoverableamount and the asset is impaired in a situation where the previous is higher than thelater. Allocation of all the impairment is carried out in a situation where the impairmentloss is relied in profit or loss. Every asset is focussed on impairment and is tested in case of impairment withinwhich there is an indication that impairment of all the assets are done (Caruso, Ferrariand Pisano2016). Csonversely, there are distinct assets that includes infinite tangiblegoodwill as well as assets. This is also tested for annual impairment with lack in all theimpairment indicators. Recoverable amount computation is carried out at an individualasset level. Conversely, the assets result in the independent cash flows of severalassets. In addition, most of the assets are tested for classes of asset impairmentmentioned within the form of cash generation units. Based on “Paragraph 104 of AASB 136”, the “impairment loss recognition” forthe “cash generating unit” can be carried out in consideration to the amount recoverableassociated with the unit is decreased in contrast to the units carrying amount (Detzen,Stork Genannt Wersborg and Zülch 2016). “Impairment loss” allocation is carried out infor reducing an asset’s “carrying amount” regarding the units in two chronologicalorders. Firstly, the carrying amount which is related with goodwill and associated with

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