Homework Answers
An impairment of loss can happen due to many reasons. When impairment of loss to assets happen, the difference in value of market value to book value will be negative.
a) asset damaged badly: when a asset is damanged badly due to some reason. Then the market value of asset reduces. For example: a building collapsed due to hurricane. Then market value will be lesser than book value
b) asset price reduced: due to low demand or due to some invention of alternative product, if the asset loses demand in the market. Then the market value will be lower than book value. In this case, impairment loss of asset happens
c) legal issues impact: if there are any legal issues revolving around the asset. Then no one would be willing to purchase the asset. Even this can cause impairment loss to asset
Add Answer to:
Question Three: IAS 76 Property, Plant and Equipment requires that where has been a permanent diminution...
Companies should review their property, plant, and equipment whenever events or changes in circumstances indicate that...
Companies should review their property, plant, and equipment whenever events or changes in circumstances indicate that the book value may not be recoverable. Which of the following is NOT an example of such events or changes in circumstances? a) a significant change in the way the asset is used b) costs of constructing the assets that are less than the planned amount c) a current period operating loss d) a negative cash flow from operating activities
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets...
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets may be carried at cost less accumulated depreciation, or they can be periodically revalued upward to current value and carried at the revalued amount less accumulated depreciation. If revalued, the adjustment is reported in other comprehensive income. Subsequent depreciation is based on the revalued amount. ASPE does not allow assets to be revalued at an amount exceeding historical cost less accumulated depreciation. ABC Ltd.,...
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets...
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets may be carried at cost less accumulated depreciation, or they can be periodically revalued upward to current value and carried at the revalued amount less accumulated depreciation. If revalued, the adjustment is reported in other comprehensive income. Subsequent depreciation is based on the revalued amount. ASPE does not allow assets to be revalued at an amount exceeding historical cost less accumulated depreciation. ABC Ltd.,...
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets...
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets may be carried at cost less accumulated depreciation, or they can be periodically revalued upward to current value and carried at the revalued amount less accumulated depreciation. If revalued, the adjustment is reported in other comprehensive income. Subsequent depreciation is based on the revalued amount. ASPE does not allow assets to be revalued at an amount exceeding historical cost less accumulated depreciation. ABC Ltd.,...
ACC206: Financial Reporting MCQ please help 1. According to FRS 16 Property, Plant and Equipment, gains...
ACC206: Financial Reporting MCQ please help 1. According to FRS 16 Property, Plant and Equipment, gains when selling property, plant and equipment for cash: a. are the excess of the cash proceeds over the fair value of the assets. b. are the excess of the book value of the assets over the cash proceeds. c. are part of cash flows from operations. d. None of the listed options. 2. At the end of its fiscal year, an adverse economic condition...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value A $24,000 $36,000 $27,000 27,000 39,000 24,000 36,000 24,000 18,000 B с C Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave...
Tuesday, December 2018 REVIEW QUESTION 2 A cash generating unit (CGU) comprising a factory, plant and...
Tuesday, December 2018 REVIEW QUESTION 2 A cash generating unit (CGU) comprising a factory, plant and equipment etc and associated purchased goodwill becomes impaired because the product it makes is overtaken by a technologically more advanced model produced by a competitor. The recoverable amount of the cash generating unit falls to Tshs. 60m, resulting in an impairment loss of Tshs.80m, allocated as follows: CA before impairment CA after impairment Tshs. (m) Tshs. (m) Goodwill 10 Patent (with no market value)...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value $24,000 $36,000 $27,000 27,000 39,000 24,000 36,000 24,000 18,000 А B С Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank)...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value $24,000 $36,000 $27,000 27,000 39,000 24,000 с 36,000 24,000 18,000 A B Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank)...
Question 2 At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts:...
Question 2 At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $67,700,000 Accumulated depreciation equipment 56,500,000 Buildings 94,700,000 Equipment 157,500,000 21,000,000 Land The company uses straight line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful and no residual value; the equipment is estimated to have a 10-year useful life and no residual value During 2018,...
IAS 16, Property, Plant, and Equipment, requires assets to be initially measured at cost. Subsequently, assets may be carried at cost less accumulated depreciation, or they can be periodically revalued upward to current value and carried at the revalued amount less accumulated depreciation. If revalued, the adjustment is reported in other comprehensive income. Subsequent depreciation is based on the revalued amount. ASPE does not allow assets to be revalued at an amount exceeding historical cost less accumulated depreciation. ABC Ltd.,...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value A $24,000 $36,000 $27,000 27,000 39,000 24,000 36,000 24,000 18,000 B с C Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave...
Tuesday, December 2018 REVIEW QUESTION 2 A cash generating unit (CGU) comprising a factory, plant and equipment etc and associated purchased goodwill becomes impaired because the product it makes is overtaken by a technologically more advanced model produced by a competitor. The recoverable amount of the cash generating unit falls to Tshs. 60m, resulting in an impairment loss of Tshs.80m, allocated as follows: CA before impairment CA after impairment Tshs. (m) Tshs. (m) Goodwill 10 Patent (with no market value)...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value $24,000 $36,000 $27,000 27,000 39,000 24,000 36,000 24,000 18,000 А B С Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank)...
Identifying and Recording Impairment Loss on Plant Asset Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable Cost Fair Value $24,000 $36,000 $27,000 27,000 39,000 24,000 с 36,000 24,000 18,000 A B Required a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank)...
Question 2 At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings $67,700,000 Accumulated depreciation equipment 56,500,000 Buildings 94,700,000 Equipment 157,500,000 21,000,000 Land The company uses straight line depreciation for buildings and equipment, its year and is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful and no residual value; the equipment is estimated to have a 10-year useful life and no residual value During 2018,...
Most questions answered within 3 hours.
-
What are the three mechanisms that control hormone release and a
example of each.
asked 47 seconds ago -
For this project you will be writing up a simple Clock program
to keep track of...
asked 3 minutes ago -
What would happen to the price level and real GDP if new, large
reserves of petroleum...
asked 2 minutes ago -
The December 31, 2018, adjusted trial balance for Fightin' Blue
Hens Corporation is presented below.
...
asked 7 minutes ago -
E21-11 (L02) (Amortization Schedule and Journal Entries for
Lessee) Laura Leasing Company signs an agreement on...
asked 25 minutes ago -
Joe Mataya’s company provides after-sales support for all the
photo-copiers and high-load printers on our campus....
asked 32 minutes ago -
In a statistics class there are 12 students. Five of the
students are seniors and the...
asked 1 hour ago -
can someone please explain for me in any easy way what does
Dipole mean ?
asked 51 minutes ago -
Consider the following grammar:
<S> → <A> a <B> b
<A> → <A> b | b...
asked 51 minutes ago -
Chapter’s 2 “Dominos Sizzles with Pizza Tracker” Case Study.
Ansewer the following questions:
1) What kinds...
asked 54 minutes ago -
It's a snowy day and you're pulling a friend along a level road
on a sled....
asked 53 minutes ago -
4.14D Select a diameter of a steel driveshaft
that transmits 250 hp at 5000 rpm. Bending...
asked 59 minutes ago