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Financial Accounting - Property Plant & Equipment, Proceeds

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Added on  2020-06-04

Financial Accounting - Property Plant & Equipment, Proceeds

   Added on 2020-06-04

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Financial Accounting -Property Plant &Equipment, Proceedsbefore intended use
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. Memo:.....................................................................................................................................12. Letter.......................................................................................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
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INTRODUCTIONFinancial accounting is the crucial tool which is used by the organisation in order to assistmanagers and potential managers in order form reasonable investment and financial decisions.Assessing that financial theories which investment and financing decisions which must be reliedupon the cash flow and risk. This report is going to cover the issues which could arise in IFRSexposure draft related to the Property, Plant and Equipment.TASK1. Memo:Memo To: Micheal JohnsonFrom:Amitabh Bhattacharyya (Senior cost Accountant)XYZ Consultancy firmDate: 21st April, 2018Subject: Issues emerged in IFRS exposure draft and it amendments process The main issues arise which has emerged in the IFRS exposure piece about thebelongings, plant and tools- which proceeds before intended use. In the initial time, this hasbeen observed that the IFRS has interpreted committee which has made in order to emerge anreading of the IAS 16 Property, Plant and instruments in order to tackle with it. IFRSinterpretations Committee attained a request to clarify the accounting for net proceeds fromselling items generated at the time of testing an item of belongings, resources and tools as perthe construction (Weil, Schipper and Francis, 2013). This has been observed that the interpretedthat committee which has been elaborated into two parts. The first part reduce amount ofproceeds an organisation reduced form the costs of testing in profit or loss, rather than, as areduction from the cost of the PPE to only those proceeds of organisation reducing from thecost of PPE to only those procedures emerge form testing tasks, and elaborate that net proceedsan organisations reduced which must not exceed the cost of testing covered as a portion of thecosts of the PPE. Under this Revealing piece of work, Global System Standard Commission aims to amedIAS 16 which is totally related to the property, plant and equipment. This amendments willrestrict to reduce the costs from the item of property, plant and equipment any procedures fromthe selling products from the cost of an item of the belongings, plant and tools which has been1
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