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Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting

   

Added on  2020-05-16

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Running Head: Financial AccountingFinancial Accounting
Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting_1
Financial Accounting2Table of ContentsQuestion 1.............................................................................................................................................3Question 2.............................................................................................................................................4Part (i)................................................................................................................................................4Part (ii)..............................................................................................................................................5Question 3.............................................................................................................................................8Part (i)................................................................................................................................................8Part (ii)..............................................................................................................................................8Part (iii).............................................................................................................................................9Part (iv)..............................................................................................................................................9Part (v)...............................................................................................................................................9Part (vi)............................................................................................................................................10Part (vii)...........................................................................................................................................11References:..........................................................................................................................................12
Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting_2
Financial Accounting3Question 1Fair value accounting can be applied to those assets which have no market available by considering the values available for the similar assets in the market and these assets can also be measured using some other methods. As per AASB 13 Para 27 the assets which have no commercial use and which have no market available are exchanged between willing seller and willing buyers only (Barr and McClellan, 2018). They are to be called as specialised assets which are to be valued on the basis of the future income that can be generated from those assets or the exchange value received for those assets, ideally they are not valued at fairvalue as we will be unable to identify their fair value without having active market for that asset (Hodder, Hopkins and Schipper, 2014). As per AASB 13 Para 22 We can also estimate their value from the similar assets available in the market and which have some market value or we can say fair value available as they are marketable so there must be their fair value or market value of those assets and with the help of these values we can arrive at the nearby fair value of the assets which are not marketable or which have no active market. If we value those assets at the fair value then the assumptions need to be taken by the experts for the valuation of those assets (Machado, Martins and Carvalho, 2015). The assets which have no active market can either be valued on the basis of the similar assets or by taking some assumptions only if the fair value method of accounting is used for their valuation.
Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting_3
Financial Accounting4Question 2Part (i)01-Jul-15Cost of Printing Machine $39,800Installation Cost $ 4,200 Residual Value $ 1,800 Useful Life10Straight line Method of DepreciationDepreciation$ 422030-Jun-17Useful Life 5Residual Value $ 1,200 Cost of Machine $ 39,780Depreciation $ 7,716 Journal EntriesDateParticularsAmount ($)Amount ($)30-Jun-16Depreciation A/CDr4220To Machine4220(Being depreciation charged on machine)
Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting 8 Running Head: Financial Accounting_4

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