Hence financial reports ending on 30 June 2014 cannot use this revised AASB 1031. Given this‚ in this course in 2014 we will not consider the revised AASB 1031. The Handbook will not include the revised AASB 1031 but will include the version of AASB 1031 that we consider in this course in 2014. What is materiality? Materiality is defined as Omissions or misstatements of items are material if they could
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STATE HOW BOTH COMPANIES SHOULD CLASSIFY THE LEASE. GIVE REASONS FOR YOUR ANSWER. Both Purple Ltd and Lemon Ltd should classify the lease as a finance lease based on the below. Present value of all future lease payments = ($8‚000 – $1‚000) X 3.8897 = $27‚228 Present value of guaranteed residual value = 50% X 7‚200 X 0.6499 Total present value = $27‚228 + $2‚340 of the Bulldozer The present value of the minimum lease payments is substantially all of the fair value of the leased
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2011). This classification did not satisfy the requirement of AASB‚ as according to AASB 101 Presentation of financial statement paragraph 60‚ an entity should separate current and non-current liabilities in its financial statement. Moreover‚ under AASB 101 paragraph 66‚ obviously‚ short-term liability is expired‚ settled within twelve months after reporting period‚ therefore‚ it satisfies the recognition of current liability. And AASB 101 paragraph 73 also states that the entity could classify a
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1. Accounting Analysis Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits. Financial statements are used to determine the business activities of a firm and the role of accounting analysis is to determine the accuracy and quality of the information provided. This analysis would look into the degree of its accounting figures captures its business reality through
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ACC3120 Advanced financial accounting Week 11 Tutorial: Extractive Industries 1 HPHAH‚ chapter 20‚ question 1 Outline the five phases of a company’s operations in the extractive industries. Answer: It has been suggested that there are five identifiable phases in the discovery and recovery of minerals‚ oil and natural gas. Four of these phases are “pre-production” phases‚ which means that they occur before production begins. The pre-production phases are exploration‚ evaluation‚ development and
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Harvey Norman. This report will mainly focus on their core business‚ industry‚ operating activities‚ financial performance‚ PPE & intangible and leased assets & liabilities. Finally‚ independent auditor’s report will discuss their compliance with the AASB standard. COMAPNY Introduction Being a leader in retail stores of electrical‚ computer‚ furniture‚ entertainment and bedding goods‚ Harvey Norman was founded in
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Compiled AASB Standard AASB 138 Intangible Assets This compiled Standard applies to annual reporting periods beginning on or after 1 July 2009. Early application is permitted. It incorporates relevant amendments made up to and including 25 June 2009. Prepared on 30 October 2009 by the staff of the Australian Accounting Standards Board. AASB 138-compiled 2 COPYRIGHT Obtaining Copies of Accounting Standards Compiled versions of Standards‚ original Standards and amending Standards (see Compilation
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Accounting Disclosure Analysis on Horizon Oil Ltd Exclusive Summary This report aims to examine whether Horizon Oil Limited (HZN) satisfies various disclosure requirements of the Corporations Act 2001 and Australian Accounting Standards by analyzing HZN’s annual report for the year ended 31 June 2013. This annual financial report covers the consolidated financial statements for the group‚ consisting of Horizon Oil Limited and its subsidiaries. First‚ a brief introduction is given. It includes
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BFA201 ESSAY PART B: THE RESEARCH ESSAY A THEORETICAL DISCUSION Usefulness is the basic objective of financial accounting‚ according to the AASB s Statement of Accounting Concepts and Conceptual Framework. This essay discusses the theoretical principles and accounting rules underpinning financial reporting practices within the IFRS environment. Following the implementation of the International Financial Reporting Standards in 2005‚ many additional disclosure requirements were imposed on organisations
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e.g. the right to use a motor vehicle for a month. According to AASB 117‚ there is no intent by the lessor to transfer substantially all ownership benefits and risks to the lessee. Nonetheless‚ once a contract is in place there is a right to control the inflow of economic benefits‚ and an obligation to pay for them. As such‚ both an asset and a liability do exist under the Framework definitions. (c) Research and development. AASB 138 does not allow intangible assets arising from research phase
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