3. (a) IAS 36 Impairment of Assets provides accounting guidance for the impairment of non-currentassets.Requirement:Explain what a cash-generating unit (CGU) is and how an impairment loss in a CGU should beaccounted for in accordance with IAS 36.<(b) The carrying amounts of the assets of a cash-generating unit (CGU) are as follows:2GoodwillPatents and copyrightsProperty, plant and equipmentJ£00050,00050,000150,000250,000E22JThere is evidence to indicate that the CGU is impaired. The recoverable amount of the CGU is £180,000.The fair value less costs disposal for the patents and copyrights is estimated at £35,000 and the fairvalue less costs of disposal for the property, plant and equipment is estimated at £140,000. <Requirement:<Calculate the amount of the impairment loss and explain how this should be allocated between theassets of the CGU.<(c) Explain how IFRS 13 Fair Value Measurement establishes a fair value hierarchy to categoriseinputs used to measure fair value.

Impairment loss refers to a decrease in the carrying value of an asset or cash-generating unit (CGU)…

Answered: 3. (a) IAS 36 Impairment of Assets…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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H1. Account
15 - Which of the following statements about depreciation is false? a) Depreciation is a type of expense that does not require a cash outflow. B) As a result of use, wear, tear, depreciation or obsolescence must be experienced in the tangible asset. NS) The asset to be depreciated should be among the assets of the enterprise. D) Proportional depreciation method can be applied for all tangible fixed assets. TO) For a property, plant and equipment to be depreciated, its economic life must be more than one year.
Consolidated Balance Sheet Working Paper, Identifiable Intangibles International Auto (IA) acquires all of the stock of Genuine Parts (GP) and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments. All amounts are in thousands. Cash paid to GP shareholders $10,000 2,400 Cash paid to consultants and lawyers Fair value of new IA stock issued, 1,000 shares, $4 par 72,000 1,800 500 Stock registration fees, paid in cash Fair value of earnings contingency The earnings contingency, if paid, will occur three years subsequent to the acquisition. The balance sheet accounts of GP and IA, just prior to the acquisition, are as follows: International Auto (in thousands) Current assets Fixed assets, net Trademarks Current liabilities Long-term liabilities Common stock, par value Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock Total Book Value Dr (Cr) $60,000 840,000 178,000 (50,000) (700,000)…
From page 7-1 of the VLN, acquisition cost would NOT include: A. Purchase price. B. Transportation cost to get the asset ready to be used. C. Sales taxes. D. Cost incurred to operate the asset.
AASB 116 requires disclosure of the following by asset class: I II III IV The useful lives of assets Yes No Yes Yes Accumulated impairment losses No Yes Yes Yes Items pledged as security Yes Yes No Yes Additions during the year Yes Yes Yes No ΟΙ O IV. O III Oll
The undiscounted future net cash flow is used as a benchmark to determine any impairment loss on which of the following types of intangible assets? O Limited life intangibles. O Indefinite life intangibles other than goodwill. O Goodwill. O Indefinite life intangibles.
In which method of depreciation, equal amount of depreciation is charged on the asset over its useful life O a. Written Down Value Method O b. Straight Line Method C. Sinking Fund Method d Annuity Method
Identifiable intangible assets include all of the following, except * Computer software Copyright Leasehold improvement Patent An intangible asset is identifiable when * O It arises from contractual and other legal right. It is either separable or it arises from contractual and other legal right. It is separable It is neither separable nor it arises from contractual and other legal right. Which is a characteristic of an intangible asset? * Claim for a specific amount of cash Physical existence Long-lived O Held for sale After initial recognition, an intangible asset shall be measured using * Cost model or revaluation model Cost model Revaluation model Cost model or fair value model O O O O O O O
Intangible assets on the balance sheet are subject to: Depreciation Amortization O None of the Above
please dont plagiarise otherwise i will report
The main objective of IAS 36 Impairment of Assets is to prescribe the procedures that should ensure that an entity's assets are included in its statement of financial position at no more than their recoverable amounts. Where an asset is carried at an amount in excess of its recoverable amount, it is said to be impaired and IAS 36 requires an impairment loss to be recognized. Required: Define an impairment loss explaining the relevance of fair value less costs to sell and value in use and state how frequently assets should be tested for impairment. 2. Describe the possible incators of impairment. 3. Explain how an impairment loss is accounted for after it has been calculated.
Q5 Under CCA method, depreciation is provided on the _____ of the asset: a. Historical cost b. Past cost c. Current cost d. Original cost

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