Critical analysis of the current requirements

Reference no: EM132719971

Question - Recently, the International Accounting Standards Board (IASB) has issued a new version of Property, Plant and Equipment-Proceeds before Intended Use, which made amendments to IAS 16 (AASB 116) Property, Plant and Equipment. These amendments were finalised after consulting a range of stakeholders. However, a group of investors have approached the IASB expressing their concern over these amendments and have asked the board to review its decision because of the implications these have on extractive and petrochemical industries.

Provide critical analysis of the current requirements and proposed amendments to the accounting standard. Analysis should include:

(a) Explain in what ways these proposed amendments to IAS 16 Para 17 will change the accounting for such sale proceeds before an asset's intended use.

(b) Critical analysis of the current requirements of IAS 16 Para 17. Note: Your critical analysis should include relative merits and demerits of continuing with the existing requirements of IAS 16 Para 17. Therefore, you need provide both for and against evidence-based arguments.

(c) Critical analysis of the proposed amendments to IAS 16 para 17? Note: Your critical analysis should include relative merits and demerits of introducing proposed amendments to IAS 16 para 17. Therefore, you need provide both for and against evidence-based arguments.

(d) Advice on whether or not your accounting form should support the proposed amendments to IAS 16 Para 17.

Reference no: EM132719971

Questions Cloud

Find what should the stock price be in forty-seven years : Apple has a current dividend of $2.57 and a dividend growth rate of 5.6%. what should the stock price be in 47 years according to the dividend discount model?

Prepare journal entries that fabulous athletics will need : Prepare the journal entries that Fabulous Athletics will need to record in September 2020 for both the sale of subscription boxes and related cost of goods sold

Find what is the expected return of ally financial stock : Ally Financial stock has a Beta of 1.2. If the expected market return is 7.3% and the risk free rate is 3.4%, what is expected return of Ally Financial stock?

Give internal analysis of amazon explaining : Give Internal Analysis of Amazon explaining- a)Uniqueness b)Distinctiveness

Critical analysis of the current requirements : Provide critical analysis of the current requirements and proposed amendments to the accounting standard

What is the expected net present value of the project : The project requires an initial investment of $250,000. what is the expected net present value of this Z90 project if the cost of capital is 12%?

What are your teams expectations regarding : What are your teams expectations regarding - Explain the team's agreed goals and timeline for completion - Who is responsible for each activity

Describe one of the financial measures of profitability : Identify and describe one of the financial measures of profitability, liquidity, efficiency, and leverage. How can an analyst use one of these financial.

Find what is the estimated net present value of the project : If Garner-Wagner goes ahead with this project, What is the estimated net present value of the project, after consideration of the potential future opportunity?

User Account

All Pages