Homework Answers
Under IAS 16, the equipment is recognised at the cost of purchase less accummulated depreciation and any accummulated impairment loss.
Asset is recognised only if it fullfills the 2 main criterias - Measurability of cost and future economic benefits will flow to the entity and used for production or in office or rented and proposed to be used for more than one period
Value to be recognised would be cost plus transportation to bring the asset to the place and location for installation and estimated cost for dismantling the asset. Alternatively ARO liabilty need to be created.
As the asset is acquired during the year only prorated depericiation neeed to be provided to comply with matching concept
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the
conceptual framework is with regards to the recognization of an
asset according to the accounting...
The conceptual framework is with regards to the recognization of an asset in the accounting field...
The
conceptual framework is with regards to the recognization of an
asset in the accounting field
QUESTION UNICHEM LIMITED, a company listed in the industrial sector of the JSE Limited acquired new technological manufacturing equipment to enhance their Vanderbijlpark facility. This equipment will be used to manufacture a new line of inventories. Unichem Limited decided to introduce this new line of inventories as its market research department indicated that there is a demand for these products and that Unichem Limited...
Refer to the following issues regarding the conceptual framework and answer the questions below. The conceptual...
Refer to the following issues regarding the conceptual framework and answer the questions below. The conceptual framework includes a discussion of the constraints of cost effectiveness. Assume that the International Accounting Standards Board (IASB) is considering revising an important accounting standard. Discuss and explain the desired benefit from revising an accounting standard, and some of the possible costs that could result from such a revision. Discuss what the IASB will do to assess the possible benefits and costs of a...
The Case The FASB has been working on a conceptual framework for financial accounting and reporting...
The Case The FASB has been working on a conceptual framework for financial accounting and reporting and has issued several statements of financial accounting concepts. These SFACs are intended to set forth objectives and fundamentals that will be the basis for developing financial accounting and reporting standards. The objectives identify the goals and purpose of financial reporting. The fundamentals are the underlying concepts of financial accounting – concepts guide the selection of transactions, events, and circumstances to be accounted for;...
QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting?...
QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting? 2. What is the primary objective of financial reporting? 3. What is meant by the term qualitative characteristics of accounting informat "? 4. Briefly describe the two fundamental qualities of useful accounting information 62 Chapter 2 Conceptual Framework for Financial Reporting 5. How is materiality for immateriality) related to the proper presentation of financial statements? What factors and mesures should be considered in essing...
Part 4A (9 points) Requirement 1: The FASB's Conceptual Framework includes the "mixed asset measurement concept"...
Part 4A (9 points) Requirement 1: The FASB's Conceptual Framework includes the "mixed asset measurement concept" that defines 5 different ways that assets could be measured. Identify 1 of the 5 measurement attributes, OTHER THAN HISTORICAL COST, and explain how it is measured. (Example: Historical cost is measured as the purchase price minus accumulated depreciation.) Requirement 2: In accrual accounting revenues and expenses may not be recorded at the same time as cash is received or paid. Describe a transaction...
Objective: The objective of this report is to analyse the Australian Conceptual Framework in accounting standard...
Objective: The objective of this report is to analyse the Australian Conceptual Framework in accounting standard setting and apply the related key concepts to contemporary business practices. Your discussion should be aligned with the Conceptual Framework for Financial Reporting and relevant AASBs to support your analysis. JB Hi - Fi Ltd has assets with the following costs and fair values as at 30 June 2019: Asset type cost Fair vale Inventory $886,700,000 $912,000,000 Machinery $40,800,000 $46,000,000 Total $927,500,000 $958,000,000 The...
Questions 1. How do conceptual frameworks of accounting attempt to create a theory of accounting? Describe...
Questions 1. How do conceptual frameworks of accounting attempt to create a theory of accounting? Describe the components of the IASB Framework and how it contributes to a theory of accounting. 2. Some people argue that there is no need for a general theory of accounting as established in a conceptual framework. They say there is no overall theory of physics. biology, botany or psychology, so there is no need for an overall theory of accounting. Furthermore, attempts to develop...
1. How does the conceptual framework differ from an accounting standard? a. The principles in the...
1. How does the conceptual framework differ from an accounting standard? a. The principles in the conceptual framework are specific in nature while accounting standards provide more general requirements for financial reporting. b. The principles in the conceptual framework are general concepts while accounting standards provide specific requirements for a particular area of financial reporting. c. The principles in the conceptual framework are designed to provide guidance and apply to a limited range of decisions relating to the preparation of...
[25] According to the FASB’s conceptual framework, which of the following is an essential characteristic of...
[25] According to the FASB’s conceptual framework, which of the following is an essential characteristic of a liability? A. Liabilities must require the obligated entity to pay cash to a recipient entity. B. Liabilities must be legally enforceable. C. The identity of the recipient entity must be known to the obligated entity before the time of settlement. D. Liabilities are obligations resulting from previous transactions or events. [26] Consolidated financial statements are prepared when a parent-subsidiary relationship exists in recognition...
JICES Exercise 2-1 The conceptual framework has been created to make accounting information useful Indicate whether...
JICES Exercise 2-1 The conceptual framework has been created to make accounting information useful Indicate whether the following statements about the conceptual framework are true or false (a) Accounting standards that rely on a body of concepts will result in useful and consistent pronouncements () General purpose financial reports are most useful to company insiders in making strategic business decisions. (c) Accounting standards based on individual conceptual frameworks wil generally result in consistent and comparable accounting reports. (d) Capital providers...
The
conceptual framework is with regards to the recognization of an
asset in the accounting field
QUESTION UNICHEM LIMITED, a company listed in the industrial sector of the JSE Limited acquired new technological manufacturing equipment to enhance their Vanderbijlpark facility. This equipment will be used to manufacture a new line of inventories. Unichem Limited decided to introduce this new line of inventories as its market research department indicated that there is a demand for these products and that Unichem Limited...
QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting? 2. What is the primary objective of financial reporting? 3. What is meant by the term qualitative characteristics of accounting informat "? 4. Briefly describe the two fundamental qualities of useful accounting information 62 Chapter 2 Conceptual Framework for Financial Reporting 5. How is materiality for immateriality) related to the proper presentation of financial statements? What factors and mesures should be considered in essing...
Part 4A (9 points) Requirement 1: The FASB's Conceptual Framework includes the "mixed asset measurement concept" that defines 5 different ways that assets could be measured. Identify 1 of the 5 measurement attributes, OTHER THAN HISTORICAL COST, and explain how it is measured. (Example: Historical cost is measured as the purchase price minus accumulated depreciation.) Requirement 2: In accrual accounting revenues and expenses may not be recorded at the same time as cash is received or paid. Describe a transaction...
Questions 1. How do conceptual frameworks of accounting attempt to create a theory of accounting? Describe the components of the IASB Framework and how it contributes to a theory of accounting. 2. Some people argue that there is no need for a general theory of accounting as established in a conceptual framework. They say there is no overall theory of physics. biology, botany or psychology, so there is no need for an overall theory of accounting. Furthermore, attempts to develop...
JICES Exercise 2-1 The conceptual framework has been created to make accounting information useful Indicate whether the following statements about the conceptual framework are true or false (a) Accounting standards that rely on a body of concepts will result in useful and consistent pronouncements () General purpose financial reports are most useful to company insiders in making strategic business decisions. (c) Accounting standards based on individual conceptual frameworks wil generally result in consistent and comparable accounting reports. (d) Capital providers...
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