MAA261 Assessment 2 Solution: Finance and Accounting Analysis, Deakin
VerifiedAdded on 2023/04/21
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Homework Assignment
AI Summary
This document presents a comprehensive solution to a finance and accounting assignment, likely from a university course. The assignment focuses on the recording, expensing, and reporting of non-current assets, specifically addressing the initial valuation of assets purchased in a lump sum, including buildings, warehouses, and drilling equipment. The solution includes journal entries for asset purchases and depreciation calculations using the straight-line method, considering residual values and useful lives. The solution also addresses asset impairment, applying IAS 36 to determine and record impairment losses on drilling equipment. The document provides detailed computations, journal entries, and references to relevant accounting standards like AASB 116 and IAS 36, demonstrating a strong understanding of financial accounting principles and their application in practice. It also provides the calculations for depreciation for warehouse and drilling equipment. Furthermore, the solution includes the computation of impairment loss on the drilling equipment.
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