6.1. What effect will an asset revaluation have on subsequent period’s profit? Explain your answer. If an asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognized in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognized in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognized in profit or loss. If an asset’s carrying
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as at 30 June 2011 is as follows: Debit Credit $ $ Administration expenses 689,000 Advertising expenses 109,000 Bank loan 216,000 Carrying amount of plant and machinery sold 23,000 Cost of sales 3,421,000 Sales commission expense 45,000 Deposits at call 132,000 Dividends received 43,000 Deferred tax asset 212,000 Ordinary shares, fully
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fair value except inventory (fair value $28 000; carrying amount $20 000) and machinery (fair value $75 000; cost $100 000 and carrying amount $70 000). The remaining useful life of the machinery is four years. The inventory was sold on 15 August 2010. In June 2013, the directors of Marjoram Ltd transferred the general reserve to retained earnings. Required Prepare the business combination valuation reserve entries for the consolidation worksheet at 30 June 2013. (4 Marks)
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Fair Amount Value Inventory $70 000 $80 000 Plant & Equipment (cost $300 000) 186 000 190 000 Machinery (cost $18 000) 15 000 16 000 Trademark 100 000 110 000 Land 50 000 70 000 Goodwill 25 000 55 000 Goodwill was not impaired in any period. The plant and equipment had a further five year life at acquisition date and was expected to be used evenly over that time. The trademark was considered to have an indefinite life. The machinery, which was estimated to have a further four year
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Financial Reporting and Analysis DE5G 35 Assessment Exemplar for Higher National Unit DE5G 35: Financial Reporting and Analysis 1st edition: May 2004 Price: £20.00 Publication code: CB 1989 Published by the Scottish Qualifications Authority, Hanover House, 24 Douglas Street, Glasgow, G2 7NQ, and Ironmills Road, Dalkeith, Midlothian, EH22 1LE The information in this publication may be reproduced to support SQA qualifications. If it is reproduced, SQA should be clearly acknowledged as the
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Chapter 17 Audit ing the Investing and Financing Cycle |Learning Check | 17-1. Investing activities represent the purchase and sale of land, buildings, equipment, and other assets not generally held for resale. In addition, investing activities include the purchase and sale of financial instruments not intended for trading purposes (discussed in chapter 18). Financing activities include transactions and events whereby cash is obtained from or repaid to creditors (debt
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4194 APRIL 19, 2010 TIMOTHY A. LUEHRMAN JAMES QUINN Groupe Ariel S.A.: Parity Conditions and Cross-Border Valuation On June 23, 2008, a Monday morning, Arnaud Martin arrived at his office in Groupe Ariel’s corporate headquarters in Mulhouse, France. The previous week, Martin had requested additional financial information about an investment proposal from Ariel-Mexico, a wholly owned subsidiary that operated a manufacturing facility and a regional sales office in Monterrey, Mexico. The
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IIM INDORE PGP 2015-17 FINANCIAL ACCOUNTING & CONTROL ASSIGNMENT-2 This assignment is intended to help you practice solving problems and get concept clarity on two topics: Cash Flow Statement and Inventory Valuation. Attempt all questions and submit by 31st Aug 2015. 1. S Co. entered into the following transactions: a. Paid suppliers b. Received dividend from an associate. c. Sold investments at a gain. d. Purchased copyrights with cash. e. Issued debentures in exchange
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4194 APRIL 19, 2010 TIMOTHY A. LUEHRMAN JAMES QUINN Groupe Ariel S.A.: Parity Conditions and Cross-Border Valuation On June 23, 2008, a Monday morning, Arnaud Martin arrived at his office in Groupe Ariel’s corporate headquarters in Mulhouse, France. The previous week, Martin had requested additional financial information about an investment proposal from Ariel-Mexico, a wholly owned subsidiary that operated a manufacturing facility and a regional sales office in Monterrey, Mexico. The
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CHAPTER 10 Acquisition and Disposition of Property, Plant, and Equipment ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises 1, 2, 3, 4, 5, 13 Concepts Problems for Analysis 1. Valuation and classification of land, buildings, and equipment. 1, 2, 3, 4, 6, 7, 12, 13, 15, 21 2. Self-constructed assets, capitalization of overhead. 5, 8, 20, 21 4, 6, 12, 16 3. Capitalization of interest. 8, 9, 10, 11, 2, 3, 4 13, 21 4, 5, 7, 8,
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