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Financial Accounting and Reporting - Report

   

Added on  2020-05-16

15 Pages3452 Words48 Views
Running head: FINANCIAL ACCOUNTING AND REPORTING Financial Accounting and ReportingName of the StudentName of the UniversityAuthors NoteCourse ID

FINANCIAL ACCOUNTING AND REPORTING1Table of ContentsBrief Overview:..........................................................................................................................2Answer to Requirement A:.........................................................................................................2Answer to Requirement B:.........................................................................................................4Answer to requirement C:........................................................................................................11Reference List:.........................................................................................................................13

FINANCIAL ACCOUNTING AND REPORTING2Brief Overview: The current report is based on the determination of the depreciation under the fourmethods namely the Straight-line method, Diminishing Value, Units of productionDepreciation and Sum of Years Digits Depreciation. The report will additionally provide theadvantages and disadvantage of each of the depreciation method with recommendations forthe most suitable method of depreciation. The report would further provide the requirementsof the IAS 16/AASB 116 and would highlight the most consistent method of depreciationsuitable for the computations made. Answer to Requirement A:Computations of Depreciations:Straight Line Method of Depreciation: Straight-Line MethodYear-ended 30 June Opening BalanceAnnual Depreciation Expenditure Accumulated DepreciationCarrying Amount atthe end of year20161200000110000110000109000020171090000110000220000980000201898000011000033000087000020198700001100004400007600002020760000110000550000650000Total 550000Formula:FormulaDepreciation Expense = (Cost - Residual Value) / LifeCost1200000Residual Value100000Estimated Life (Years)10

FINANCIAL ACCOUNTING AND REPORTING3Diminishing Value Method of Depreciation: Diminishing Value MethodYear-ended 30 June Opening BalanceAnnual Depreciation Expenditure AccumulatedDepreciationCarrying Amount at the end of yearDepreciation Rate201612000001080001080001092000920171092000982802062809937209201899372089435295715904285920199042858138637710082290092020822900740614511617488399Total 451161Sum of Years Digits: Sum of Year Digit Depreciation (SYD) MethodYearCarryingAmountSYD FractionCost - ResidualDepreciation ExpensesAccumulatedDepreciationCarrying Amount at the end of year112000000.331100000366667366666.666783333328333330.27110000029333366000054000035400000.20110000022000088000032000043200000.131100000146667102666717333351733330.071100000733331100000100000Total15/15 or 1Total Depreciation1100000.00Formula:Depreciation Expense = [SYD fraction x (Cost - Residual Value)]Units of Production Depreciation Units of Production DepreciationYear-ended 30 JuneCarrying Amount Units of OutputAnnual Depreciation Expenditure Accumulated DepreciationCarrying Amount at the end of yearDepreciation Rate per unit

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