In general, when is it necessary to write down property, plant, and equipment? How can we determine the value to which it should be written down?
Answer to relevant QuestionsDescribe the steps followed to determine whether there has been an impair-ment of a long- lived asset.What factors indicate that significant influence may be present between an investor and an associate? How would such an investment be reported?On 1 July 20X2, a company bought an investment in IBM bonds at par for US$ 50,000 when the exchange rate was US$ 1 = Cdn$ 1.12. The investment is classified as FVTPL. The company paid cash on the acquisition date. At 31 ...Investor Limited owns 35% of Machines Limited and has significant influence. The investment was made five years ago, when Machine’s fair values equaled book values; $ 40,000 of goodwill was inherent in the purchase price. ...FYY Limited purchased 500 shares of Humor Inc. for $ 6,000 plus $ 500 in commission. The shares had a fair value of $ 19,000 at the end of 20X1, $ 25,000 at the end of 20X2, and $ 40,000 at the end of 20X3. In 20X4, the ...
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