basic principle of impairment is that an asset may not be carried on the statement of financial position above its recoverable amount‚ which is the higher of the asset’s fair value less costs to sell and its value in use. An asset’s carrying value is compared with its recoverable amount and the asset is impaired when the former exceeds the latter. Any impairment is then allocated to the asset‚ with the impairment loss recognised in profit or loss. All assets subject to the impairment review are tested
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the difference between current assets and current liabilities. This ratio measures the ability of a company to pay its current obligations using current assets. The current ratio is calculated by dividing current assets by current liabilities. | | | | | | 20X1 | 20X0 | Current assets | $38‚366 | $38‚294 | Current liabilities | 27‚945 | 30‚347 | Current ratio | 1.4 : 1 | 1.3 : 1 | | This ratio indicates the company has more current assets than current liabilities. Different
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revised ED is aimed to improve the quality and comparability of financial reporting by providing a greater transparency about the leverage‚ the asset that an entity used in its operations‚ and the risk to which it is exposed from entering into lease transactions (AASB ED-242‚ 2013). Lessee Accounting The ED wants all leases to be recognised as right-of-use assets and lease liabilities‚ except short-term leases. AASB 117 only requires finance leases to be recognised on statements. This essay will focus
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per shares‚ which are I. Net Assets Method of share valuation Net asset value is a method that based on the firm’s assets. Intangible assets which including goodwill should be excluded as the intangible assets include the brand name of the company which is indefinite assets. Unless there are definite assets like patents and copyrights which has limited life‚ then it can be include in when using this method to calculate the values of company per share as the assets can be sold. The data use to perform
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provide principles for recognising and measuring financial assets‚ financial liabilities (including derivative financial instruments) and some specific contracts to buy and sell non-financial items. Initial Recognition: Financial asset or financial liability is only recognised on balance sheet when and only when‚ an entity becomes a party to contractual provisions of the instruments. Initial Measurement: At initial recognition‚ the financial asset or liability is measured at fair value. Directly attributable
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INVESTMENT & PORTFOLIO MANAGEMENT FIN3IPM TUTORIAL ANSWERS TUTORIAL 1: INTRODUCTION CHAPTER 1: QUESTION 1 a The process of investment concerns the purchase of assets which will provide a future return to allow for future consumption or further investment. Individuals have to make choices between current and future consumption and because their pattern of income does not always match their pattern of consumption‚ they are required to make investments. Throughout an individual’s life
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costs incurred after the exploration of the area has begun and up to the point where the technical feasibility and commercial viability have been demonstrated (Wieck‚ Young 120). IFRS 6 excludes the activities that are covered in IAS 38‚ Intangible Assets‚ and IAS 16‚ Property‚ Plant‚ and Equipment (Wieck‚ Young 119). IFRS 6 also sets the requirements for the impairment testing and the disclosures so the users of the financial statements can easily understand the cash flows of the exploration and
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expense 599 2.5% 689 Income before provision for income taxes 5‚008 5‚759 Provision for income taxes (calculated on income before tax) 1‚512 30.2% 1‚739 Net income $3‚496 4‚020 Balance Sheet Pro Forma 2007 % of sales 2008 ASSETS: Current assets: Cash and cash equivalents $9‚352 39.0% 10‚755 Short-term investments 6‚034 25.1% 6‚939 Accounts
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default and the company’s credit risk is low. If a firm is non-manufacturing firm‚ it have to use modified z-score model. This type of model did not include the fifth ratio (X5: Sales/ Total assets). It was because they have less total assets if compare with manufacturing firms and the value from sales to total assets ratio will have a greater change in a z-score. It was no fair for non-manufacturing firm using the original z-score. So‚ a z-score above 2.6 was considered as safe zone. Decreasing in z-score
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|Mar’ 09 |Mar’ 08 |Mar’ 07 |Mar’ 06 | | | |Fixed assets | |Gross block |2‚750.98 |2‚516.27 |1‚938.78
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