Explain whether the directors proposal

Assignment Help Accounting Basics
Reference no: EM131814536

One of the directors on the board of directors of Manly Ltd has proposed that the company adopt the revaluation model for the measurement of its machinery. Some of this machinery is difficult to replace because of its unique nature and certain items of machinery have increased in value in the current period. The director is arguing that, as there has been no decline in the machinery's fair value, no depreciation expense should be recognized on these items of machinery.

Required:

Explain whether the director's proposal (about not recognizing depreciation) should be adopted by the board.

Reference no: EM131814536

Questions Cloud

What are the legal and ethical issues related to testing : How do psychological tests differ; what are the different types? How are they used, in what settings are they used, and by whom are they used?
Calculate how much loss gerald can deduct : High Air reported a $15,000 loss for its X9 calendar year. Calculate how much loss Gerald can deduct
What is amount of laurie deductible investment interest : Laurie has a brokerage account at Dean Schwab, Inc. What is the amount of Laurie's deductible investment interest
Explain what the ratios calculations show : Explain what the ratios calculations show and how the business can use this information to improve its performance. Justify all answers. List all references.
Explain whether the directors proposal : One of the directors on the board of directors of Manly Ltd has proposed that the company adopt the revaluation model for the measurement
What is a process addiction : What is a process addiction? What is a substanceuse disorder? How are the two similar and how are they different?
Find total fixed manufacturing overhead : Hibshman Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year
How us dominance in global psychology has detracted : How the dissatisfaction with Western Psychology and the dominance model has muted the impact of other current and potential psychology models.
Prepare a flexible budget for cedar jeans company : Prepare a flexible budget for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd