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Impairment Loss | Financial Accounting

   

Added on  2022-09-18

7 Pages1022 Words23 Views
Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Authors Note:

FINANCIAL ACCOUNTING
1
Executive summary:
Calculation of impairment loss and recording the same in the books of accounts properly
at the end of each accounting period, if needed is an extremely crucial and important step in
preparation and presentation of financial statements. However, it is an extremely complex
process to correctly calculate the amount of impairment loss to a fixed asset or cash generating
unit. The challenges currently faced by the companies to calculate and report impairment loss
shall be discussed here by taking into considerations the point of views of Australian Securities
and Investments Commission (ASIC) provided in its official website along with the guidelines
mentioned in AASB 136 and the literature review on impairment of assets will improve the
understandability of the topic.

FINANCIAL ACCOUNTING
2
Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Explanation:.....................................................................................................................................3
Conclusion:......................................................................................................................................4
References:......................................................................................................................................6

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