Accounting and Financial Management Assignment Analysis Report

This assignment solution addresses various aspects of accounting and financial management. It begins by presenting a chart of accounts, followed by a detailed closing entry. The solution then tackles three questions: The first question focuses on calculating the initial cost of acquisition and annual amortization fees for a printer. The second question involves calculating impairment losses for multiple cameras, considering their carrying amounts and recoverable amounts. The final question covers the accounting treatment of a patent, including journal entries for its acquisition and revaluation. The assignment incorporates relevant accounting principles and provides clear explanations and calculations. The document also includes a bibliography of related academic sources.

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting and Financial Management
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING AND FINANCIAL MANAGEMENT
Table of Contents
Chart of accounts:............................................................................................................................2
Closing entry:...................................................................................................................................3
Question 1:.......................................................................................................................................3
Question 2:.......................................................................................................................................4
Question 3:.......................................................................................................................................5
Bibliography:...................................................................................................................................6

2ACCOUNTING AND FINANCIAL MANAGEMENT
Chart of accounts:
Account
Code Name of account
1-0000 Assets
1-0001 Banks
1-0010 Stock of goods
1-0020 Impairment loses
1-0030 Debtors-Client
1-0040 Short-Term investments
1-0041 Short-term investments (shares)
1-0060 Non-current assets
1-0070 Intangible fixed assets:
1-0071 Industrial Propriety
1-0072 Cumulative depreciation II
1-0080 Tangible fixed assets:
1-0081 Constructions
1-0082 ICT Equipment.
1-0083 Furniture
1-0084 Transport
1-0085 Cumulative depreciation IM
2-0000 Liabilities
2-0010 Current liability
2-0020 Short-term debts
2-0030 Short-term debts to institutions.
2-0031 Suppliers
2-0032 Creditors
2-0040 Liquidity:
2-0041 Banks
2-0050 Non-current liability
2-0051 Long-term debts
2-0052 Long-term debt to institutions.
3-0000 Equity
3-0010 Equity capital:
3-0020 Capital Social
3-0030 Legal reserve
3-0040 Profit and Loss

3ACCOUNTING AND FINANCIAL MANAGEMENT
Closing entry:
Explanations Accoun
t Code Debit Credit
Industrial property 1-0071 40.5
Construction 1-0081 3900
ICT Equipment 1-0082 9
Furniture 1-0083 70
Transport 1-0084 35
Stock of goods 1-0010 62
Debtors client 1-0030 236.2
Short terms investment 1-0041 9
Bank 1-0001 225
Cumulative depreciation II 1-0072 5
Cumulative depreciation IM 1-0085 122
Impairment loss 1-0020 1.15
Long term debt to institutions 2-0052 710
Short term debt to institutions 2-0030 38
Suppliers 2-0031 200
Creditors 2-0032 3.56
Capital social 3-0020 3000
Legal reserve 3-0030 348.18
Profit and loss 3-0040 158.81
(Closing Entry made to close assets and liabilities)
Question 1:
Computation of initial cost of acquisition:
Price of the printer € 25,000.000
Installation and assembly costs € 3.000
Transportation and delivery € 1.150
Initial cost of the acquisition € 25,004.150
Computation of annual amortization fees:
Cost of the printer to be capitalized € 25,004.150
Less: Cost of rehabilitation € 5,000.000
Depreciable amount € 20,004.150
Life of the assets 10
Amortization fees (20004.150/10) € 2,000.415

4ACCOUNTING AND FINANCIAL MANAGEMENT
Computation of daily maintenance costs:
Monthly maintenance costs € 250.000
Daily maintenance costs
(250/30) € 8.333
Question 2:
Camera 1:
Cost € 1,750
Less: Accumulated depreciation for 3 years (1750*20%*3) € 1,050
Carrying amount € 700
Less: Recoverable amount € 575
Impairment loss € 125
Camera 2:
Cost € 3,500
Less: Accumulated depreciation for 3 years (3500*20%*3) € 2,100
Carrying amount € 1,400
Less: Recoverable amount € 1,500
Impairment loss NIL
Camera 3:
Cost € 1,950
Less: Accumulated depreciation for 3 years (1950*20%*3) € 1,170
Carrying amount € 780
Less: Recoverable amount € 750
Impairment loss € 30
Camera 3:
Cost € 4,550
Less: Accumulated depreciation for 3 years (4550*20%*3) € 2,730
Carrying amount € 1,820
Less: Recoverable amount € 2,200
Impairment loss NIL

5ACCOUNTING AND FINANCIAL MANAGEMENT
Question 3:
Date Explanations Debit Credit
1-Mar-16 Patent € 7,500
Bank € 7,500
(To record acquisition of patent right)
31-Dec-16 Patent € 1,500
Revaluation Surplus (9000-7500) € 1,500
(To record the revaluation in the value of intangible
assets)
31-Dec-17 Revaluation Surplus (9000-8000) € 8,000
Patent € 8,000
(To record the revaluation in the value of intangible
assets)

6ACCOUNTING AND FINANCIAL MANAGEMENT
Bibliography:
Avallone, F. and Quagli, A., 2015. Insight into the variables used to manage the goodwill
impairment test under IAS 36. Advances in accounting, 31(1), pp.107-114.
Novák, M., 2016. The Quality of Disclosure under IAS 38 in Financial Statements of Entities
Listed on PSE. European Financial and Accounting Journal, pp.31-44.
Svoboda, P. and Bohušová, H., 2017. Amendments to IAS 16 and IAS 41: Are there any
differences between plant and animal from a financial reporting point of view?. Acta
Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(1), pp.327-337.