Show how the impairment loss in sharon is allocated

Assignment Help Financial Accounting
Reference no: EM132499479

Peter owned 100% of the security of the equity share capital of Sharon, a wholly-owned subsidiary. The asset at the reporting date of Sharon were as follows:

Goodwill N$ 2 400 000

Buildings N$ 6000 000

Plant and equipment N$ 5 200 000

Other intangibles N$ 2000 000

Receivables and cash N$ 1 400 000

Point 1: On the reporting date a fire within one of Sharon's building led to an impairment review being carried out. The recoverable amount of the business was determined to be $9.8million. The fire destroyed some plant and equipment with a carrying value of 1.2 million and there was no option but to scrap it.

Point 2: The other intangibles consist of a licence to operate Sharon's plant and equipment. Following the scrapping of some of the plant and equipment a competitor offered to purchase the patent for $1.5 million. The receivable and cash are both stated at their realisable value and do not require impairment.

Question 1: Show how the impairment loss in Sharon is allocated amongst the assets

Reference no: EM132499479

Questions Cloud

How people talk and interact with each other : Many playwrights take inspiration for their plays from the world around them. Then they take that inspiration and transform it into the world of the play.
Show how the matter will be disclosed in ppe note : Show how this matter will be disclosed in PPE note for the year ended 31 December 2019. Machine is the only asset of the entity.
Differences in audience expectation at different live events : What are some differences and similarities in audience expectations at different live events, such as those listed above? Include experiences you have had.
Implied exchange rate between the dollar and the dm : What is the implied exchange rate between the dollar and the DM?
Show how the impairment loss in sharon is allocated : Show how the impairment loss in Sharon is allocated amongst the assets. Peter owned 100% of the security of the equity share capital of Sharon
Create a script for a public service announcement : Create a script for a Public Service Announcement (PSA), either for the radio, for TV, or to be shared online, perhaps even all three. How might you communicate
Determine the amount of the realized holding gain : Determine the amount of the realized holding gain. In the determination of realized holding gains for firms using FIFO costing which amount should be adjusted
How many days will the ration be sufficient : In a remote army camp, 10 soldiers have the ration for 21 days. If 3 soldiers leave the camp before the start of the 21 days, for how many days will the ration
Coupon interest rate must the company set on the bonds : What coupon interest rate must the company set on the bonds with warrants if they are to clear the market? The convertible bond should have an initial price of

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