logo

(Sample) Management Accounting Assignment

   

Added on  2021-06-16

8 Pages1807 Words30 Views
Running head: MANAGEMENT ACCOUNTINGManagement accountingSubject name and numberName of the student and numberName of the universityStudent IDAuthor note

1MANAGEMENT ACCOUNTINGStudent name: Student number:Executive summaryThe objective of this report is to recognize the property valuation of VCX. The report willidentify and explain the flexibility that the management have in order to determiningvaluation of investment property. It will also explain the expected impacts owing to thechanges in retail industry and its impact on the financial statements. Finally, the report willstate the economic impact of changes in the retail industry.

2MANAGEMENT ACCOUNTINGStudent name: Student number:Answer (a)Vicinity Centres (VCX), the leading retail company prepares their financial statementin accordance with the requirement of the GPFR (general purpose financial report). It alsocomplies with the Corporation Act 2001 and the AASs (Australian accounting standards).Further, the company complies with the requirement of IFRS and the statute issued by theIASB (Barth 2013). The company’s investment properties are segregated into leaseholdinterest and freehold interests on the building and land that is kept for earning income from it.It considers various criteria to evaluate the assets investment potentials. It provides thecompany with a benchmark framework that assist to recognize when there is an opportunityfor acquisition. As per the requirement of AASB, the investments are valued at cost initially.This cost is inclusive of the transaction costs. However, subsequently the investments arerecorded at fair values at the closing of each accounting period or at each financial statement.This valuation at fair values is depended upon the market value that is measured by theexternal valuers or the internal valuations (Vicinity.com.au 2018). While the project isdeveloped the valuations includes work in progress as well as the capital cost. Further, theportfolio valuation project s as follsws –The company values each of its investment property independently or internally in bi-annual procedure that is every June and December. The requirements of the process are asfollows –The valuation made by internally shall be reviewed by independent valuation firm orby the director to assess the assumptions adopted and the reasonableness for theoutcomes.’each of the property shall be individually valued once in a year at leastWhen the property is not kept for independent valuation it shall be internally valued.If it is found that there is more than 10% variance in the internal valuation of theproperty as compared to the previous valuation, it shall be valued again by theindependent valuation (Hodgson and Russell 2014).Methodology for the portfolio valuation –In compliance with the requirement of AASB 13 related to fair value measurement,the company segregates the fair value measurement hierarchy as follows –

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
(Solved) Management Accounting : Report
|7
|1756
|32

Vicinity Centre VCX: Accounting Treatment for Investment Property
|8
|2048
|215

Accounting Standards & Regulations
|7
|1828
|55

Accounting Standards and Regulation - Doc
|7
|1692
|29

Accounting Standards and Theory
|7
|1834
|36

Accounting and Financial Reporting
|9
|2187
|63