following assumptions: 1. Calculations are done on a nominal basis‚ converting the salvage value estimate from a real to a nominal value (638 = 500(1.05)5) using the 5% inflation estimate; salvage = book value so no taxes are incurred on salvage. 2. Depreciation is calculated at [4‚000 – 638 (salvage) ]/ 5 = 672.4 per year. 3. Cars sales occur in year 1
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SUMMARY OF IAS 16 Objective of IAS 16 The objective of IAS 16 is to prescribe the accounting treatment for property‚ plant‚ and equipment. The principal issues are the recognition of assets‚ the determination of their carrying amounts‚ and the depreciation charges and impairment losses to be recognised in relation to them. Scope IAS 16 does not apply to assets classified as held for sale in accordance with IFRS 5 exploration and evaluation assets (IFRS 6) biological assets
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Abbreviations |B.P. Bond Payable |PIC Paid In Capital.| |C.S. Common Stock |APIC Additional PIC | |CSE Common SE |PMR Profit Margin | |EOF End of |Ratio | |Financing (Period) |PV Present Value | |FV Future Value |R.E. Retained | |IE Interest Expense|Earnings | |I.S. Income |S.H. ShareHolder | |Statement |S.E. ShareHolder | |FS Financial |Equity | |Statements |SYD Sum of the | |LCM
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accumulated OCI CHAPTER 10 - PPE -Identify the different components of PPE (property‚ plant‚ equipment) and related accumulation depreciation. Locate the depreciation methods and estimates used for the calculations. -Identify valuation basis (market value or historical costs) and describe the impairment testing procedure for PPE. -Identify the amount of depreciation expense in the IS (or the notes) Compute profitability ratios and provide a short analysis (see exercise 10-26B). CHAPTER 11
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Practice Exam Chapters 9-12 1. Montana Co. has determined its year-end inventory on a FIFO basis to be $600‚000. Information pertaining to that inventory is as follows: What should be the carrying value of Montana ’s inventory? A. $600‚000. B. $520‚000. C. $590‚000. D. $510‚000. 2. On July 8‚ a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: What is the estimated inventory on July 8 immediately
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Goodwill for Impairment CLAUDIA Inc. has an internally generated goodwill and did not amortize or tested for impairment. They cannot amortize because measuring the components are complex and associating the costs incurred with future benefits are too difficult. Goodwill cannot generate cash flows independently and is made as a combination with other assets making up a business; it needs to be assigned to a reporting unit or cash-generating unit in order to test for impairment. Under ASPE‚ the impairment
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Chapter 1 CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false‚ explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB
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ACCT201/EXERCISE QUESTION 4/CH.3 Question DMD.‚ opened a dental clinic on August 1‚ 2007. The business transactions for August are shown below: |Aug 1 |Dr. Cravati invested $280‚000 cash in the business in exchange for 1‚000 shares of capital stock. | |Aug 1 |Rented an office and paid 3-month rent in advance‚ $2‚000 | |Aug 4 |Land and building were purchased for $400‚000. Of this amount‚ $60‚000
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list of cost items The costs of generation of steam are conveniently split into Fuel costs Electricity for pumps‚ blowers‚ other equipment Water Feed water chemicals Repair and maintenance (R+M) _______________________________________ Depreciation of boiler and auxiliary equipment Staff costs Note 1: The first set of cost items are variable costs. They occur only if steam is generated. Note 2: The second set of cost items are fixed costs. They occur no matter how many hours the
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Substantive Procedures - Asset Irregularities ACC/556 November 24‚ 2014 Introduction This next phase of the auditing process for Apollo Shoes Inc. (Apollo) is the designing of an audit program‚ which will detail substantive procedures for detecting irregularities in the accounts receivable‚ inventory‚ and fixed assets audit cycles. Fixed Assets Apollo’s irregularities in fixed assets‚ has caused concern for substantive procedures to be designed to audit this cycle. The most common schemes where
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