7101AFE Financial Accounting Theory and Practice Tutorial Questions for Tutorials 1- 6: Semester 1 2015 TUTORIAL 1 - Semester 1 2015 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 – Question 1.2: If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements‚ would you have developed a positive theory or a normative theory? The first of all‚ it is important to understand the mean by a ‘theory’. According to Contemporary
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held-for-trading; at fair value through profit or loss. h) As in (e) except that in the prior year Company H sold the majority of its held-tomaturity investments to Company Z. Cannot be classified as held-to-maturity‚ classified as available-for-sale (AASB 139.52)‚ measured at fair value with changes in fair value through equity. i) Borrowing of $1‚000‚000‚ carrying a variable interest rate – financial liability‚ measured at amortised
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Dividend of $ 20‚000 was declared on 15 October 2012‚ and been paid on 15 November 2013. • On 31 October 2012‚ Dyson sold the entire interest for $1.1 million. • Partial goodwill method is used in Malone. Theory and Impact of Accounting Treatment • AASB 10 Paragraph 97-99 The consolidated financial statement involves adding together the financial statement of the parent and subsidiary and making a number of adjustments. • Impact of Investment on Consolidation - On 30 June 2012 Brennan should recognize
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will remain in the pre-regulation period. Second method is ‘systematic write- off’‚ which is regularly written off over a limited period. This method is also called amortization that is under AAS 18 and AASB 1013. The third method is ‘ad- hoc write- off’‚ which can be called as impairment under AASB 136. This method is permanent and can remain unlimited in the balance sheet unless evidence shows its value has been reduced. Question 2 The deficiency of recovery amount and carrying amount is recognized
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Introduction The Australian Accounting Standards Board (2013) makes the Australian Accounting Standards‚ including Interpretations. The neutral Standards was adopted when AASB merged with Public Sector Accounting Standards Board and it is now to be applied to all types of entities that are required to prepare financial reports by the Corporations Act 2011‚ the General Government Sector (GGS) and entities in the for-profit or not-for-profit private or public sectors that are reporting entities. However
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performing quality assurance reviews of audit work. FRC‚ whenever necessary‚ advises or gives feedback to Australian Accounting Standards Board (AASB) on their priorities‚ proposals‚ budgets and even appoint members or arrange the structure of members (other than the Chairs). It also has an effective hand in determining the broad strategic directions of AASB (FRC 2011). Moreover‚ it stretches its hands to monitor the development of single-set of accounting and auditing standards in regards to the international
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your final grades. You are eligible for a Supplementary Exam if you receive a mark between 45-49% for your final grade. Ch6 revaluations and impairment testing of NCA AASB 116 ppe AASB 138 intangible assets AASB 136 impairment of Assets 6.4. Pursuant to AASB 136 impairment of assets‚ AASB 116 Property‚ plant and Equipment and AASB 138 Intangible Assets‚ intangible assets and ppe shall not be disclosed in the financial statements at an amount in excess of their recoverable amount. Recoverable amount
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in relation to: • accounting concepts • other accounting standards • accounting theory • public interest Reading material › “Issues in Financial Accounting” 14th ed.‚ 2011 › Accounting handbook 2013 › (material can be freely downloaded from the AASB site) it ) › Other readings may be provided through library website (on-line course readings) or as instructed on Blackboard All weekly readings are examinable. 2 5 Overview of ACCT 2011 Overview of ACCT6001 Feedback › Marked midterm test: general
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destroyed. Required: The board of directors has approached you for advice regarding the disclosures‚ if any‚ which are required for this change in accounting policy. As the change in accounting policy was voluntary‚ the provisions of paragraph 29 of AASB 108 are applicable as follows: the nature of the change the reasons that applying the new accounting policy provides reliable and more relevant information to the extent practicable‚ the amount of the adjustment for the current and previous periods
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major five Australian companies Qantas‚ Ten Networks‚ Billabong‚ Bluescope steel and Harvey Norman. This research mainly deals with controversies surrounding the recent introduction and application of ‘fair value’ measurement system by the IASB and AASB. The author refers an article written by Adele Ferguson published in ‘The Age’ newspaper on 14th june 2012. This article refers the possible assets write downs by many Australian companies. And it also refers the Australian accounting standard
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