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Corporate Accounting Assignment Sample

   

Added on  2019-12-03

10 Pages2677 Words364 Views
Corporateaccounting

TABLE OF CONTENTSIntroduction......................................................................................................................................3International Accounting Standards.................................................................................................3IAS 16 Property Plant and Equipment.........................................................................................3IAS 36 Impairment of assets........................................................................................................4IAS 38 Intangible assets...............................................................................................................4IAS 40 Investment property.........................................................................................................5IFRS 5 Non-current Assets Held for Sale and Discontinued Operations....................................6Effect of incorrect treatments on financial performance and financial reporting............................7Conclusion.......................................................................................................................................8References........................................................................................................................................92

INTRODUCTIONInternational Accounting Standards are developed in order to promote uniformity andreliability in accounting statements. Organization engaged in global operations are required tocomply these standards for recording of transactions for financial statements. Further, corporateentities are also recommended doing accounting by considering these norms and standards forbetter presentation (Van Greuning, Scott and Terblanche, 2011). Present project report is focusedon description and applicability of IAS by considering given business information. Al Falaj LLCis involved in various project thus to ensure uniformity in accounting of recording of non currentassets they are considering use of IAS. In this report, description of accounting standards whichare linked to the recording of non current asset will be provided along with its practicalapplication. INTERNATIONAL ACCOUNTING STANDARDSIAS 16 Property Plant and EquipmentThis accounting standard deals with the recording of property, plant and equipment bymaking its appropriate valuation. In accordance with the provisions of this standard, these assetsare recorded at its cost and subsequently it is measured by using its cost or revaluation model.Along with this, it is also depreciated on a systematic basis over its useful life (Cairns and et. al.2011). Objective of this standard is to provide appropriate treatment of recording non-currentasset due to principle issues such as determination of carrying amounts, impairment losses anddepreciation charges. Recognition criteria of this IAS is as follows- It is probable that asset has association with the future economic benefits to the flow ofentityReliable measurement of cost of asset is possible.As per this standard, initial measurement is done by considering its cost (IAS 16.5). Further, costof an asset includes all necessary expenses incurred by business organization to bring asset inappropriate working conditions for its intended use (Richardson and Eberlein, 2011). Example ofsuch expenses are installation charges, related professional fees and delivery charges. Further,subsequent measurement of cost is done by considering provisions of cost and revaluationmodel. 3

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