The accountant of Fingal Ltd has presented land and a pine tree plantation as a single asset

Question:

The accountant of Fingal Ltd has presented land and a pine tree plantation as a single asset on the basis that the two are interrelated, with one component being worth almost nothing without the other.

Required

Advise the accountant whether this position is acceptable.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Reporting

ISBN: 9780730396413

4th Edition

Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes

See More Books

Question Posted: Apr 16, 2024 01:01 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
for this case study carefully read the article titled "The Case for Reparations" The Atlantic Introduction Provide an overview of the situation Identify critical issues underlying the problems...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
The adjusted trial balances of Rosa Corporation at August 31, 2014, and August 31, 2013, include these amounts (in millions): Rosa completed these transactions (in millions) during the year ended...
The article "Application of Methods for Central Statistical Monitoring in Clinical Trials" (Clinical Trials, 2013: 783-806) made a strong case for central statistical monitoring as an alternative to...
During processing in a steel mill, a 750-lb steel casting at 800F is quenched by plunging it into a 500-gal oil bath, which is initially at a temperature of 100F. After the casting cools and the oil...
Suppose that revenue has the form where $h$ can be chosen and $x$ and $y$ are random variables. The distribution of $x$ and $y$ is symmetric about $(0,0)$; that is, $-x,-y$ has the same...
Calculating Discounted Payback An investment project has annual cash inflows of $6,500, $7,000, $7,500, and $8,000, and a discount rate of 14 percent. What is the discounted payback period for these...
5. One particular equation involving energy states that E = 1mv where the energy E has 2 units of joules (J), the mass m is in units of kg, and the velocity v is in units of m/s. Another energy...
The lessee of West Coast Wines Ltd manages the vineyards under a lease. It has included vineyards as an asset in its accounting records as it is responsible for the management and harvest. Required...
The manager of Smithton Ltd does not believe that the companys immature crops belong in the calculation of biological assets, as there is no active market for immature crops, and they are not yet at...
The photoelectric work function of potassium is 2.3eV if light having a wavelength of 250 run falls on potassium, find (a) The stopping potential in volts; (b) The kinetic energy in electron volts of...
The innovative replacement program is estimated to last for 250 years. Rerun your analysis again beyond the five-year current replacement cycle in 10-year increments and determine the inflection...
A marketing firm has collected the following information on how much actual sales they observed in the previous 5 periods. Based on this information, what would be the 3 period weighted moving...
What is an example of a direct performance measure?
How do authors employ allusions as tools of satire and parody, subverting established norms, tropes, and conventions by appropriating and recontextualizing familiar cultural references to critique...
How do allusions facilitate the exploration of identity and belonging within multicultural texts, allowing authors to negotiate the complexities of cultural hybridity, diasporic experiences, and the...
The 66 low-orbit satellites in the Iridium project are divided into six necklaces around the earth. At the altitude they are using, the period is 90 minutes. What is the average interval for handoffs...
Explain briefly what is meant by electronic data interchange (EDI). How does EDI affect a companys audit trail?
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs...
Analyze significant trends you see for the company's debt over the last 3 years, including how the company uses debt or equity to raise capital, any significant debt the company may be carrying, and...
The IRS can impose a penalty of 75% of the underpayment in what circumstance? When the underpayment is caused by losses in investment securities. When the taxpayer is shown to have intentionally...

The accountant of Fingal Ltd has presented land and a pine tree plantation as a single asset

Question:

Step by Step Answer:

A single class of asset that combines land and a pine tree plantation related to agricultural activity is not allowed by accounting standards AASB 141...View the full answer

Financial Reporting

Students also viewed these Business questions