What are the reporting requirements for each

Assignment Help Accounting Basics
Reference no: EM132848926

Question - The following events have come to the attention of Fast Travel Ltd's Chief Financial Officer for the financial year ended 30 June 2020:

i) The useful life of the company's fleet of jets has increased from 10 years to 13 years due to improved maintenance systems that have been recently implemented. The jets were acquired on 1 July 2017 for $5,000,000 and were depreciated on the straight-line basis over its useful life. Assume that the residual value is zero.

ii) An investigation during the current financial shows that the figure for depreciation expense for the jets in the previous financial year ended 30 June 2019 was incorrectly calculated and should have been $100,000 instead of $20,000.

Assume all amounts are material.

Requirements -

a) What are the reporting requirements for each of the above events according to AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors'?

b) Prepare the necessary journal entries to comply with AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors'.

Reference no: EM132848926

Questions Cloud

What features of the original constitution of united states : What features of the original Constitution of the United States of America were the most progressive, extraordinary, and enduring? WHY?
Compute for the future value of a ordinary annuity : Compute for the future value of a 5-year ordinary annuity with annual payments of P2,000, evaluated at a 15 percent interest rate
Standard deviation of this sample of shopping times : Find the standard deviation of this sample of shopping times. Round your answer to two decimal places.
Analyze the goals of progressivism : Trace what types of activities "anti-progressives" engaged in? Analyze the goals of progressivism. Explain what areas of society progressives addressed?
What are the reporting requirements for each : What are the reporting requirements for each of the above events according to AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors'
Difference in likelihood of turning off the light : Determine whether there is a difference in likelihood of turning off the light based on the poster campaign.
Discuss the success or failures of individuals in society : Discuss the success or failures of individuals in the society? What evidence would you use to support your position? For this discussion
Prepare the consolidation journal entries for financial year : On 25 June 2020, Parent Ltd declared a dividend of $40,000. Prepare the Consolidation Journal entries for the financial year ended 30 June 2020
Find data on the total dividends paid : You decide to invest in stock in a particular type of company and set the guideline that you will only buy stock in companies that are ranked

Reviews

Write a Review

Accounting Basics Questions & Answers

  Given the importance of proper system development what role

given the importance of proper system development what role should an accountant take in a development

  Explain the use of profitability liquidity and debt ratios

explains to the board of directors how you developed the balance sheet and its importance. Explain the use of profitability, liquidity and debt ratios.

  Which highest bidder in the sale of delinquent shares is

Which highest bidder in the sale of delinquent shares in a public auction is? Bidder who is willing to receive the highest number of shares in exchange

  What is the balance of the unearned revenue account

The company has a December 31 year end. What is the balance of the unearned revenue account after adjusting entries on December 31, 2018

  What amount should be accrued for interest for this note

The note is dated October 1, 2014 and carried an original principal amount of P600,000. What amount should be accrued for interest for this note

  Snappy company has a job-order costing system and uses a

snappy company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to

  Write about the process costing and analysis

Please write about Following with one example minimum. Process Costing and Analysis. Comparing Job order and process Operations.

  Draw a basic sales activity model using bpmn

Draw a basic sales activity model using BPMN for a fast-food restaurant. Draw a second basic sales activity model using BPMN for a traditional restaurant.

  Compute the budgeted factory overhead rate

Compute the budgeted factory overhead rate, Compute the applied overhead costs

  Computing basis in the inventory received

Calculate Suzy's recognized gain or loss on the distribution, if any. Calculate Suzy's basis in the inventory received. Calculate Suzy's basis in land received. The land is a capital asset. Calculate Suzy's basis for her partnership interest after th..

  What amount of cash should Angela invest

The asset is subjected to a real mortgage amounting to P250,000. What amount of cash should Angela invest in addition to the real property

  What types of situations result in troubled debt

What types of situations result in troubled debt? What are some of the general rules for recognizing gain or loss by both parties in a troubled debt situation? How would you report these gains or losses?

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