代写 BUSN2036 Financial Accounting Issues
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代写 BUSN2036 Financial Accounting Issues
BUSN2036 Financial Accounting Issues 2016
Assignment
10 marks total, consisting of 5 Questions, each worth 2 marks
Question 1 – Intangible Assets
In their article entitled ‘U.S. firms challenged to get “intangibles” on the books’,
Byrnes and Aubin (2011) noted that in the United States some companies were
accounting for intangibles such as brands, patents and information technology
differently when they were developed internally rather than being acquired. This
could mean major differences in accounting numbers where internally generated
intangibles developed at low costs by one company were sold for large amounts to
another company. They noted:
“The accounting difference could result in distorted behaviour, warns Abraham
Briloff, a professor emeritus of accountancy at Baruch College, tempting companies
to buy intellectual property rather than doing research themselves.”
Required:
1. Explain in less than 250 words the accounting for internally generated intangible
assets in AASB 138/IAS 38. (1 mark)
2. Discuss in less than 100 words any differences between accounting for internally
generated intangible assets and acquired intangible assets in AASB 138/IAS 38.
(1 mark)
Question 2 – Impairment of Assets
Potters Ltd has determined that its fine china division is a CGU. The carrying
amounts of the assets at 30 June 2016 are as follows:
Factory $210 000
Land 150 000
Equipment 120 000
Inventories 60 000
Potters Ltd calculated the value in use of the division to be $510 000.
Required:
Provide the necessary journal entries for the impairment loss (1 mark) and show all
calculations (1 mark).
BUSN2036 Financial Accounting Issues 2016
Question 3 – Provisions and Contingencies
Required:
In each of the following scenarios, explain in less than 120 words whether or not
Omega Ltd would be required to recognise a provision.
(a) As a result of its plastics operations, Omega Ltd has contaminated the land on
which it operates. There is no legal requirement to clean up the land, and Omega
Ltd has no record of cleaning up land that it has contaminated. (0.5 marks)
(b) As a result of its plastics operations, Omega Ltd has contaminated the land on
which it operates. There is a legal requirement to clean up the land. (0.75 marks)
(c) As a result of its plastics operations, Omega Ltd has contaminated the land on
which it operates. There is no legal requirement to clean up the land, but Omega
Ltd has a long record of cleaning up land that it has contaminated. (0.75 marks)
Question 4 – Financial Instruments
Last Ltd is a manufacturing company that makes loans to other parties from time to
time. The loan assets are classified by Last Ltd as subsequently measured at amortised
cost. On 1 July 2016, Last Ltd made the following loan:
A 3-year loan of $1 million to Grate Ltd at an interest rate of 15% p.a. due annually in
arrears on 30 June each year. Grate Ltd incurred transaction costs of $97,749 in
respect of this loan to arrange charges for security.
Required:
Prepare the entries of Last Ltd to account for this loan from initial recognition on 1
July 2016 to de-recognition on 30 June 2019 (1 mark), showing all calculations (1
mark).
代写 BUSN2036 Financial Accounting Issues
BUSN2036 Financial Accounting Issues 2016
Question 5 – Foreign Currency Transactions
Stranded Ltd is an Australian company that purchases inventories from Hammers plc,
which is an English company. The following information is relevant to a recent
acquisition of inventories for £300 000 pursuant to a contract with terms including
FOB shipping.
Date Event Exchange rate
11 May 2017 Inventories shipped A$1 = £0.41
22 June 2017 Inventories delivered A$1 = £0.42
30 June 2017 End of reporting period A$1 = £0.43
31 July 2017 Cash payment of £300 000 to Hammers plc A$1 = £0.39
Required:
In accordance with AASB 121/IAS 21, prepare all of the journal entries of Stranded
Ltd that relate to the foreign currency purchase of inventories (1 mark) including all
calculations and explanations where necessary e.g. why choose a certain date to
process a transaction, what year end disclosures apply, what final profit or loss applies
on the deal (1 mark).
代写 BUSN2036 Financial Accounting Issues