Reference no: EM132312432 , Length: word count:2000
Corporate Accounting - Business Report Assignment
Assessment Task: Business reports are practical learning tasks where students apply the theories they have been studying to real world situations. The students are required to select a topic or work on a topic provided by the lecturer, collect information (Primary and/or secondary) or work on the information provided by the lecturer, and prepare a report describing a business problem or incident.
ASSESSMENT DESCRIPTION: This assessment is designed to assess the students' ability to research and analyse accounting standards, and interpret how to apply relate corporate accounting concepts to various scenarios. It evaluates students' problem solving and researching skills and enables them to communicate the financial affairs of a company. The assignment is consist of 2 sections; the theory section which assesses the researching skills and case study section with complex calculations which allows the students to apply relevant accounting standards to the real life case.
Part A: A short essay about the following: How to calculate Recoverable amount, Value in use, Fair value less cost of disposal.
Part B: Provide all calculations and related journal entries for the following case: Gali Ltd has determined that its fine china division is a CGU. The carrying amounts of the assets at 30 June 2015 are as follows:
Account
|
Carrying Amount
|
Equipment
|
$205,700
|
Franchise
|
$47,000
|
Furniture
|
$30,000
|
Inventory
|
$13,000
|
Goodwill
|
$11,000
|
Total CA
|
$306,700
|
Gali Ltd calculated the value in use of the division to be:
|
$273,700
|
If the fair value less costs of disposal of the Equipment is:
|
$197,696
|
Required - Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015 including supporting calculations.
Attachment:- Assignemnt Files.rar