references for your answers and quote where you have written something that is word-for-word from a source Textbook Questions (15 marks): Challenging Question 29 (5 marks) Applicability of AASB 138: A taxi licence would be considered to be an intangible asset and must be accounted for in accordance with AASB 138. Intangible assets can be carried at cost (less any accumulated amortisation and accumulated impairment losses) or at fair value by way of asset revaluations. However‚ intangible assets
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Chin (Val.Chin@uwa.edu.au) • Mr Kevin Burns (Kevin.Burns@uwa.edu.au) Unit overview: Learning outcomes • Completion of this unit should help you to: • interpret and apply specific requirements of a range of Australian Accounting Standards (AASBs) • critically evaluate accounting requirements under Australian GAAP • prepare general purpose financial statements for Australian reporting entities; and • discuss and apply advanced concepts to the preparation of consolidated and/or equity
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the Framework The Australian Accounting Standards Board (AASB) is implementing the Financial Reporting Council’s policy of adopting the Standards of the International Accounting Standards Board (IASB) for application to reporting periods beginning on or after 1 January 2005. The AASB is replacing relevant existing AASB Standards with Australian Standards equivalent to those of the IASB. Consequently‚ the parts of the existing Australian conceptual framework (SAC 3 Qualitative Characteristics
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and is to be disclosed in the financial reports. Some companies only disclose the brand and goodwill as their only intangible assets‚ while others include more such as software and the company trademarks (Loftus et al. 2012). The Accounting Standard AASB 138 advises businesses on the accounting treatment of these intangible assets‚ but only if the specific criteria have been met for an asset to be recognized as intangible. An intangible asset must encompass three characteristics: Identifiable:
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3 1. Profile and Strategies ……………………………………………………. 4 2. Key Accounting Policies ………………………………………………... 4 2.1. Revenue Recognition [AASB 118] ……………………………………... 4 2.2. Impairment of Asset (AASB 116) ………………………………………. 4 2.3. Foreign Currency Transactions (AASB 121) …………………………… 5 2.4. Employee Benefits (AASB 119) ………………………………………... 5 3. Degree of flexibility ……………………………………………………... 5 3.1. Revenue Recognition – Moderate ………………………………………. 5
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understanding of the regulatory environment in which the companies are formed and operate in Australia. • Outcome 2: A solid foundation in accounting and reporting requirements of the Corporations Act and relevant Australian Accounting Standards Board (AASB) accounting standards. • Outcome 3: A comprehensive understanding of the advanced issues in accounting for assets‚ liabilities and owner’s equity. • Outcome 4: The ability to account for income taxes. • Outcome 5: The ability to account for leases
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include: I. II. III. IV. V. a. b.* c. d. overseeing the process for the setting of accounting standards of the AASB. determining the AASB’s broad strategic direction. monitoring and reviewing the level of funding for the AASB. directing the AASB in relation to the development or making of a particular standard. the power to veto a standard recommended by the AASB. I‚ II‚ III and V only I‚ II‚ and III only I‚ II‚ IV and V only II‚ III‚ IV and V only 2. The role of the Australian
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are required to be amortised over their useful lives defined as ‘the period of time over which the asset is expected to be used by the entity‚ or the number of production or similar units expected to be obtained from the asset by the entity’ (Para 8 AASB 138). Amortisation methods based on time would be applied to intangible assets whose lives are limited by time. Same applies to intangible asset’s life limited to the production of a certain number of units of product. Where the pattern of benefits
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At past AASB 139 provide that the financial assets are classified based on four categories‚ each category apply to different conditions and measurement standards‚ the new standard AASB 9 simplify the classification and measurement of financial assets base on two categories: the objective of the entity’s business model for managing the financial assets; and the characteristics of the contractual cash flow. Under AASB 9‚ the entity’s business model for managing the financial assets is a new accounting
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of Contents Executive Summary 2 1. Summary of IPL’s activities and strategies 3 2. Key accounting policies and Accounting Standards 3 2.1 Revenue Recognition – AASB 118 3 2.2 Foreign Currency Translation – AASB 121 3 2.3 Income Taxes – AASB 112 4 2.4 Consolidation – AASB 127 4 2.5 Impairment of Assets – AASB 136 4 3. Management’s flexibility in selecting key accounting policies 4 3.1 Interest Bearing Liabilities 4 3.2 Derivative Financial instruments 5 3.3 Interest Bearing
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