Reference no: EM131968575

Questions: 1. The following segment information relates to Camping Capers Ltd.

	Total Segment Revenue	Segment Result		Segment Assets
Camping	190000	21000		60000
Fishing	175000	82000		174000
Boating	255000	120000		126000
Clothing	76000	(22000)		63000
Financial Services	84000	19000		39000
Tourism Services	80000	(48000)		198000
Total	860000	172000		660000

All revenues are external, except for $30,000 of Camping, $50,000 of Fishing, and $40,000 of Financial Services, which are internal. Camping Capers earned a further $100,000 of revenue that is not attributable to operating segments.

Required: a) Determine which segments are reportable according to the guidelines provided in AASB 8. Show all calculations and workings and refer to the appropriate paragraphs of AASB 8 being applied. 18 marks

b) How should any non-reportable segments be disclosed? 2 marks

2. Woobies Ltd has determined that its construction division is a cash-generating unit. The carrying amounts of the net assets for this division as at 30 June 2017 are as follows:

Cash	$ 14000
Accounts Receivable (net)	22000
Inventory	56000
Loan Receivable	30000
Goodwill	40000
Equipment	180000
Accumulated Depn - Equipment	(60000)
Factory	240000
Accumulated Depn - Factory	(60000)
Land	200000
Total	662000
Accounts Payable	23000
Net Assets	639000

The land has a fair value less costs of disposal of $180,000 (as at 30 June 2017).

It was determined on 30 June 2017 that the CGU's fair value less costs of disposal was $556,000, and its value in use was $576,000.

At 30 June 2018, Woobies Ltd, because of a reversal of the indicators leading to the impairment, assessed the recoverable amount of the cash-generating unit to be $30,000 more than the carrying amount of the unit. As a result, Woobies Ltd recognised a reversal of the impairment loss.

As at 30 June 2017, prior to impairment, depreciation was charged on the Equipment at $30,000 p.a. and on the Factory at $20,000 p.a.

After impairment, the new depreciation was revised to $28,000 p.a. for the Equipment and $25,000 p.a. for the Factory. These entries were processed on 30 June 2018.

The land has a fair value less costs of disposal of $190,000 (as at 30 June 2018).

Required: a) Provide the appropriate journal entry for Woobies Ltd in relation to the impairment testing on 30 June 2017. Show all calculations and workings.

b) Provide the appropriate journal entry for Woobies Ltd in relation to the impairment reversal on 30 June 2018. Show all calculations and workings.

3. Required: Prepare a short argument (maximum 350 words) providing reasons both FOR and AGAINST the recognition of an internally generated brand name in the financial statements of an entity. Refer to the Conceptual Framework and/or Accounting Standards where appropriate to support your argument.

4. On 1 July 2017, Garrett Ltd completed construction of an oilrig. At the end of the 10-year tenure period (30 June 2027), they are required to restore the environmental damage arising from the oilrig. As at 1 July 2017, the best estimate to restore the environmental damage is $19,000,000. The pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability is 10%. On 30 June 2018, the best estimate is still $19,000,000, but the appropriate discount rate has changed to 9% due to market conditions.

Required: a) Provide the appropriate journal entries for Garrett Ltd for the year ending 30 June 2018. Show all calculations and workings.

b) Briefly explain why the restoration costs are recognised as a provision rather than being disclosed as a contingent liability by referring to the Conceptual Framework and/or Accounting Standards.

c) Briefly explain your treatment of the provision (in part [a], above) by referring to the Accounting Standards.

5. On 1 August 2017, Diddy Ltd (an Australian company) enters into an agreement to borrow US$800,000 from Kong Ltd. Kong Ltd sends the loan money to Diddy Ltd's Australian bank account on that date. The loan is for six years and requires the payment of interest at the rate of 7% p.a. on 31 January and 31 July each year. Diddy Ltd's reporting date is 30 June.

Relevant exchange rates were:

1 August 2017 A$1.00 = US$0.76

31 January 2018 A$1.00 = US$0.78

30 June 2018 A$1.00 = US$0.82

31 July 2018 A$1.00 = US$0.81

Required: a) Provide the appropriate journal entries in the books of Diddy Ltd for the year ending 30 June 2018 to account for the above transaction.

b) Show all supporting calculations and workings.

Information related to above question is enclosed below:

Attachment:- 2036181A_Assignment_Question__faaaaaa.rar