How to perform impairment testing for the tiny division

Assignment Help Financial Accounting
Reference no: EM132721644

Joshua Inc. uses IFRS and accounts for their property plant & equipment at amortized cost. Joshua has a cash generating unit, Tiny Division, with a very unique business.

Tiny Division has the following carrying amounts at June 30, 2021, its year end:

Land $ 3,000

Building 20,000

Equipment 4,800

At June 30, 2021, the undiscounted future cash flows from operation and disposal of the division are estimated to be $28,000 (present value $25,000). The land could now be sold for $4,000 (net of costs) but no separate valuations can be done on the building and equipment as there is little market for them for standalone use.

Required:

Problem a) Perform impairment testing for the Tiny Division and calculate any impairment loss.

Problem b) Prepare the journal entry resulting from (a) Would your answer change if Joshua reported under ASPE? How & Why?

Reference no: EM132721644

Questions Cloud

Find and journalize adjusting entry to record accrued fees : Adjusting Entry for Accrued Fees, Journalize the adjusting entry to record the accrued fees. If an amount box does not require an entry, leave it blank.
What amount should Rangoon Mine report as depletion : In its 2011 statement of comprehensive income, what amount should Rangoon Mine report as depletion
What are the measured external costs : Assume that the multiplier for Stahman's hidden external failure costs is six. What are the measured external costs? what is the total hidden cost?
Indicate the accounts that are increased for transactions : Feb. 1, 2015 Pays principal and interest to Olathe State Bank. Indicate the accounts that are increased and/or decreased for each of the above transactions.
How to perform impairment testing for the tiny division : Tiny Division has the carrying amounts at June 30, 2021, Perform impairment testing for the Tiny Division and calculate any impairment loss.
What gain does Beaverton have as a result : The securities have a basis of $400,000 and a fair market value of $490,000. What gain does Beaverton have as a result of the distribution
Estimate the cost of goods transferred out of finishing dept : Estimate the cost of the goods transferred out of the finishing department. Determine the cost of the finishing department's ending work in process inventory.
What is Nell basis in his partnership interest : During the year the partnership borrowed $6,000 using the machine as collateral. What is Nell's basis in his partnership interest as of December 31st, Year 1
Explain scenarios violate the qualitative characteristics : Explain if the above scenarios violate the qualitative characteristics, assumptions or principles under the Conceptual Framework.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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