Reference no: EM131207503 , Length: word count:2000

Assignment

This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory.

The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sure you do proper referencing, at least use 6 references, to be submitted .

Part A:

1000 word short essay about the nature of "Impairment loss" and required disclosures including referencing.

Part B:

Crossbow Ltd is an entity that specialises in the manufacture of leather footwear for women. It has aggressively undertaken a strategy of buying out other companies that had competing products. These companies were liquidated and the assets and liabilities brought into Crossbow Ltd.

At 30 June 2015, Crossbow Ltd reported the following assets in its statement of financial position:

Land          $200 000

Inventory products                                                 180 000

Brand 'Crossbow Shoes'                                        160 000

Shoe factory                                                            700 000

Machinery for manufacturing shoes                       400 000

Goodwill on acquisition of competing companies   40 000

                                                                                  $1 680 000

Because of the competition from overseas as customers pursue a strategy of buying online rather than visit Crossbow Ltd's stores, Crossbow Ltd assessed its impairment position at 30 June 2015. The indicators suggested that an impairment loss was probable. Crossbow Ltd calculated a recoverable amount of its company of $1 420 000. The fair value less costs of disposal of the land was $171 000.

Required

Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015.

Assessment

Assessment Type: Assignment - Individual assessment - 1000 + 10%

word theory interpretation essay and a response to a practical application of the theory.

Purpose: To allow students to demonstrate their ability to relate corporate accounting concepts and applying their understanding of accounting standards AASB 36 and AASB 117 Students will be required to complete complex calculations for impairment and other relevant accounting standards covered in the lectures This assessment relates to learning outcomes a b c d

Topic: Question focuses on impairment and compliance issues of accounting standards.

Task Details: Students are to analyse the given issues and problems, identify and apply relevant standards, and create relevant, supported conclusions and make justified recommendations to given issues and problems. Specific presentation requirements will be advised in Moodle.

Research Students need to support their analysis with reference from the text and a Requirements: minimum of six (6) suitable, reliable, current and academically acceptable sources - check with your tutor if unsure of the validity of sources.

Groups seeking Credit or above grades should support their analysis with increased number of reference sources comparable to the grade they are seeking.

Marking Guide:

Analysis, Computation and Problem solving

Demonstrating and applying knowledge of AASB36 & AASB117

Research - extent and application

Presentation

The total mark will be scaled to 20 subject marks.

References:- 6 Harvard