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Financial Reporting Assignment | Advance Finance Impairment

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Added on  2020-05-16

Financial Reporting Assignment | Advance Finance Impairment

   Added on 2020-05-16

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Running head: ADVANCE FINANCE IMPAIRMENTADVANCE FINANCE IMPAIRMENTName of the studentName of the universityAuthor Note
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1ADVANCE FINANCE IMPAIRMENTTable of ContentsAssessment task Part A....................................................................................................................3(i)Assets tested for impairment.............................................................................................3(ii)Method of conducting impairment test.............................................................................4(iii)Impairment expenditures...................................................................................................5(iv)Assumptions and estimates used by the company for conducting impairment test..........6(v)Subjectivity involved in the process of impairment testing..............................................7(vi)Interesting, surprising, difficult or confusing part to understand impairment testing.......7(vii)New insights regarding conducting the impairment.........................................................8(viii)Fair value measurement.................................................................................................8Assessment task Part B....................................................................................................................9(i)Reason why the former accounting standards does not reflect the economic reality.......9(ii)Reasons why under the previous accounting standards the lease liabilities of thereporting entities in the balance sheet were 66 times more than the reported debts under thebalance sheet................................................................................................................................9(iii)Reasons why the Chairperson of IASB is in the view that under the previous accountingstandard no level playing field was there among some airline entities.....................................10(iv)Reasons why the Chairperson is in the view that the new standard will not be popularwith everyone.............................................................................................................................10
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2ADVANCE FINANCE IMPAIRMENT(v)Possibilities that the new visibility with regard to all the leases will result into betterinformed decision for investment..............................................................................................11References......................................................................................................................................12
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3ADVANCE FINANCE IMPAIRMENTAssessment task Part AThe main aim of this report is to focus on the disorder benchmark as well as theassumptions, which have been implemented by the given company called, Campbell BrothersLimited. It is a testing service providing company. At first, it was named as Campbell Brothersand later they changed it to ALS Limited. The company is based in Australia and the company isa soap and chemical manufacturing company that is listed under the Australian Stock exchange(Alsglobal.com 2018). The company has its main operations in 4 major divisions, ranging fromthe Industrials, Energy, Life Sciences and Minerals. It is one of the largest testing and analyticalgroups of companies around the world. While accounting for a company, the financial asset of a company is assessed at a givenreporting period in order to give evidence in case the asset is impaired. In accounting terms, anasset is considered impaired or disordered during the time when the evidences that have beenearlier collected expresses that several events that have taken place in the course of business isnegatively influencing the cash flow values for the future. In such cases, definite impairmentcharges are required to be taken and the loss needs are to be calculated (AmirALSani, Iatridisand Pope 2013). An impairment loss is with respect to the financial or non-financial assets that ismeasured at an amortized cost. The amortized cost is the contrast in between the present value ofthe asset that is reckoned, and the carrying cost. However, there are certain assets that areimpaired individually, and certain assets are impaired in groups. (i)Assets that are tested for impairmentAs witnessed from the annual reports of the company for the year ended as on 31 March2016.
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