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(pdf) Corporate Accounting Sample Assignment

   

Added on  2021-06-17

8 Pages1586 Words18 Views
FinanceEconomics
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Corporate accounting
(pdf) Corporate Accounting Sample Assignment_1

TABLE OF CONTENTSPart A...............................................................................................................................................3Part B...............................................................................................................................................6References........................................................................................................................................7
(pdf) Corporate Accounting Sample Assignment_2

Part AAccounting standard of AASB 136 Impairment of assets is applicable to every enterprise neededto prepare financial statements according to the part 2M.3 of the Corporations Act which is saidto be a reporting entity. Further, the standard targets on ensuring that carrying the amount ofasset must not surpass the recoverable amount while laying the process that an enterprise appliesto make sure that the carrying amount of asset is not more than the recoverable amount (Huikku,Mouritsen and Silvola, 2017). Impairment of asset is done when the carried amount of the samesurpasses recoverable amount. Paragraphs 12–14 of the standard (AASB 136), depicts certain conditions stating that animpairment loss may have incurred. Such indication is considered under two sources which areexternal and internal sources of information.Recoverable amount is a term based on financial accounting; it is referred to the larger part of anasset’s value offered to the corporate of presently being used. The notion of recoverable amountis generally used in terms of identifying the impairment testing of fixed assets such as plant,property or equipment (Barker and Schulte, 2017). The further recoverable amount is the greaterof the fair value of an asset from which cost of sell and value in use as well as discounted cashflow determination is deducted. Moreover, an enterprise shall test goodwill and some otherintangibles for impairment on an annual basis. In case the disposal costs are said to negligible, then the asset’s recoverable amount is closer orgreater as compared to the revaluated amount. In such situation, after applying the revaluationrequirements, it is not likely that there is impairment of revalued assets and there is norequirement of estimating recoverable amount. In case the disposal costs are not said to negligible, then the fair value minus cost of disposal iscomparatively less than its fair value (Sellhorn and Stier, 2017). Thus, impairing of the revaluedasset will be done if the VIU is lesser than the revalued amount. In such situation, after applyingthe revaluation requirements, this standard is applied by the enterprise to identify whether theasset might be impaired. Below is presented the calculation for recoverable computing amount:
(pdf) Corporate Accounting Sample Assignment_3

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