User Account

All Pages

Accounting for PPE, Financial Accounting

Assignment Help:
Acquisition of Assets:
The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition, including architects’ fees and engineering design fees and all other costs incurred in getting the assets ready for use.

Property, plant and equipment:
All items of property, plant and equipment with a cost, or other value, in excess of $3,000 are recognised in the year of acquisition. All other such items with a cost, or other value, less than $3,000 are charged as an expense.

Items or components which form an integral part of an asset are recognised as a single asset (functional asset). The recognition threshold is applied to the aggregate cost of each functional asset.

The cost of replacing the ‘B55’ fire appliance photographed on the front cover of the latest annual report with a unit of the same or similar capability is estimated to be $260,000, including fitting costs to convert the standard vehicle to a fire fighting unit of $70,000.

A spare set of tyres for the ‘B55’ appliance is obtainable at a current cost to the CFRA of approximately $5,000. Fitting costs are typically included in the overall cost of a new set of tyres. Tyres are typically replaced on these units every twelve (12) months.


---the question:


1. Assuming the CFRA acquired a replacement fire appliance for the ‘B55’ during the last financial year, state the cost of acquisition on the basis of the information supplied.
(This has to be relate to AASB 116)

Related Discussions:- Accounting for PPE

Income statement, how should i treat items in the additional information

how should i treat items in the additional information

Merchandising, A company that uses the perpetual inventory system purchased...

A company that uses the perpetual inventory system purchased $8,500 worth of inventory on September 25. Terms of the purchase were 2/10, n/30. The invoice was paid in full on Octob

Funding the investment by an issue of ordinary shares, Funding the investme...

Funding the investment by an issue of ordinary shares could tender several advantages to Springbank plc. Gearing would drop to 47% (3·5/7·4) fewer than half of the sector average o

Calculate the equity multipler, Presented below are condensed financial sta...

Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and dis

Trust law and accounts, Trust There is no generally accepted definition...

Trust There is no generally accepted definition of a trust, although many have attempted. Underhill defines a trust as"an equitable obligation binding a person (who is called a

What would be the consequences to zorn, zorn conducted his professional pra...

zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be

Compositions and schemes of arrangement, COMPOSITIONS AND SCHEMES OF ARRANG...

COMPOSITIONS AND SCHEMES OF ARRANGEMENT The debtor may lodge a written proposal with the Official Receiver for a composition or other arrangement of his affairs within four day

#1, #1. Quarter Corporation had the following transactions during the quart...

#1. Quarter Corporation had the following transactions during the quarter ended June 30, 2010: Loss from tsunami damage (extraordinary) $985,000 Payment of fire insurance premium f

Duties of trustees-trusts laws and accounts, DUTIES OF TRUSTEES 1) Not ...

DUTIES OF TRUSTEES 1) Not to profit from the trust : A trustee may not receive remuneration except: By order of the court, if the trust is very onerous or the services of the

Intangibles, #question.how to account enginering cost

#question.how to account enginering cost

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd