All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
financial accounting
Questions and Answers of
Financial Accounting
What costs should be included as part of the ‘cost’ of inventory?
What does unearned revenue represent, and when shall it be recorded?
Which financial assets shall be measured at amortised cost?
In accordance with AASB 9, the recognition of a financial asset or financial liability will be influenced by considerations as to whether there is a contractual right to exchange financial assets or
If equity investments have been made in another entity (for example, shares have been acquired), and the investments were made for trading purposes, how shall any gain or loss on the investments be
At the time of initial recognition, on what basis shall financial instruments be measured?
Surfside Ltd is marketing a ‘surfing bundle’ in which, for $1100, it provides customers with a surfboard (which retails separately for $850), a wetsuit (which retails separately for $250) and
Eddie Ltd sells to Mass Marketer Ltd an item of machinery that manufactures identical surfboards. Included in the sale was a put option that gives Mass Marketer Ltd the right to require Eddie Ltd to
When amounts to be received from customers are to be discounted (for example, the amount to be received for a sale of goods or services will be received beyond 12 months), what discount rate is to be
If an organisation receives a large donation from a particular benefactor, would this donation represent income to the organization? Explain your answer.
If an entity recognises the revenue associated with a contract with a customer over time (rather than at a point in time), would this approach be considered more conservative than an approach that
In accounting for a long-term construction contract, if the billings on a construction in progress exceed the costs assigned to the construction in progress (contract asset), then how should this be
If an entity is performing its responsibilities under a contract to a customer in a manner where the performance obligations are being satisfied ‘over time’ (rather than at a ‘point in
Noosa Ltd owns a pie shop on Hastings Street. The carrying amount of the shop in the accounts of Noosa Ltd is $1.2 million. Because it needs some funds it has decided to sell the shop to Leaseco Ltd.
For several years the IASB and the FASB had been developing an accounting standard entitled Revenue from Contracts with Customers. An original Discussion Paper was released in 2008 but the ultimate
A firm believes that it is subject to scrutiny by particular interest groups because it is earning excessive profits. Do you think that this might influence whether the firm prefers to recognise
XYZ signs a contract on 30 June 2023, agreeing to build a bridge for ABC at a contract price of $40 million. ABC will be in control of the asset throughout the construction process. XYZ estimates
Assume the same facts as in Challenging Question 28, except that XYZ now estimates at the beginning of the 2025 financial year that construction costs will be as follows:Provide the journal entries
In the presence of the following contractual arrangements, would you expect a firm to prefer to recognise revenue over time (that is, throughout the term of a contract) or to defer profit recognition
We have a separate accounting standard, AASB 138, that specifically deals with intangible assets and which provides different requirements from those for property, plant and equipment (the rules for
Will the balance sheet report the economic value of all of an organisation’s intangible assets?
Explain the difference in how you measure intangible assets that are individually acquired compared with those that are acquired as part of a business combination.
Explain the difference between tangible assets and intangible assets. Is it necessary to have different accounting rules for tangible and intangible assets?
Explain the change in requirements for accounting for research and development costs resulting from adopting International Financial Reporting Standards. Do the current requirements provide a better
What is the difference between an unidentifiable intangible asset and an identifiable intangible asset?
How is the value of goodwill determined for accounting purposes?
Would goodwill be considered an ‘asset’ according to the Conceptual Framework for Financial Reporting?
For each class of intangible assets, a reporting entity is required to disclose a reconciliation of the opening and closing carrying amount. What items are to be included within this reconciliation?
Why did many Australian reporting entities oppose the mandatory amortisation of goodwill that was prescribed under Australian accounting standards prior to international convergence in 2005?
What are possible arguments for and against the prohibition of recognition of internally generated goodwill?
What is an ‘active market’, and is an active market likely to exist for intangible assets such as brand names or development-related expenditures? Explain your answer.
Tamarama Ltd acquires 100 per cent of Bronte Ltd on 1 July 2021. Tamarama Ltd pays the shareholders of Bronte Ltd the following consideration:On 1 July 2021 Bronte Ltd’s statement of financial
Nat Ltd purchases a 100 per cent interest in Angourie Ltd. The cost of the acquisition is $1 400 000 plus associated legal costs of $70 000. As at the date of acquisition, the statement of financial
Energy Ltd is involved in the research and development of a new type of three-finned surfboard. For this R & D it has incurred the following expenditure:$50 000 obtaining a general understanding
Describe the amortisation requirements for certain identifiable intangible assets and the changes to accounting for goodwill introduced as part of the convergence with international accounting
Inglis Ltd has a number of taxi licences that are shown in the financial statements at cost. Can these licences be revalued to fair value and, if so, do they also need to be subject to periodic
State whether the following assets may be revalued. Prepare journal entries for any revaluations permitted by accounting standards (you can ignore taxation effects). Assume that each item listed
Mam Ltd acquired Bo Ltd on 1 July 2022 for $7 000 000 in cash. At that date, Bo Ltd’s net identifiable assets had a fair value of $5 800 000. The fair value of the net identifiable assets of Bo Ltd
In 2021 McGoy Ltd decided to develop a surfboard out of a new type of material that was resistant to damage. The material to be used was more like plastic than the fibreglass traditionally used on
What is goodwill, and how is it measured for financial reporting purposes?
What activities should be included in the cost of research and development? In your answer, differentiate between research activities and development activities.
IP Ltd reports the following intangible assets:Patents were acquired at a cost of $80 million and were revalued soon afterwards. They have an estimated life of 16 years, of which 12 years remain.The
In a 2018 media release from ASIC (18-310MR ‘Premier Investments writes down brand name assets’,
a. If an accounting standard is introduced that requires certain types of expenditures to be expensed rather than capitalised, and that type of expenditure is discretionary, would you expect
When an organisation acquires another organisation as part of a business combination, what impact on recognised goodwill will occur if greater value is attributed to identifiable intangible assets
In a report by KPMG (Key Audit Matters: Auditor’s Report Snapshot, 20 September 2017), it was noted that calculating and suggesting adjustments to the value of an organisation’s reported goodwill
Should computer software be classified as an intangible asset or as part of property, plant and equipment?
In 1999 the Group of 100 (G100), an Australian group representing senior executives from large Australian companies, made a submission to the Australian Accounting Standards Board. They were worried
At its September 2000 meeting, the AASB decided to provide interested parties with access to the document Strategy Paper—Intangible Assets through its website, www.aasb.gov.au. In a section
In a newspaper article by Bridget Carter and Scott Murdoch (‘Myer write down on cards’, The Australian, 12 February 2018) it was reported that the total market value of Myer shares was $480.45
Innovator Ltd incurred expenditure researching and developing a cure for a common disease found in turnips. At the end of 2021, management determined that the research and development project was
As explained within the chapter, accounting standards prohibit goodwill from being subject to amortisation. Rather, there is a requirement that goodwill be subject to impairment testing. In relation
Bloom (2009) notes how a great deal of the market value of a listed company relates to the value of its goodwill much of which has been internally generated and which is prohibited from being
In an article by Sue Mitchell entitled ‘Undies, sheets key to Pacific recovery’ that appeared in The Australian Financial Review on 27 August 2014 (p. 15), it was reported that:Pacific Brands’
ASIC issued a media release in January 2019 (19-014MR) in which it noted that numerous large Australian organisations are not properly accounting for the possible impairment of their intangible
In an article by Paul Smith entitled ‘Telstra takes $500m hit’ that appeared in The Australian Financial Review on 3 February 2018 (p. 25), it was reported that Telstra was writing down the value
If the managers of an organisation that acquires another organisation either do not recognise previously unrecorded intangible assets of the acquired company, or underestimate their fair value, how
An article that appeared in The Australian on 23 November 2005 by Blair Speedy, entitled ‘Aussie firms quick to adopt new regime’, included the following extract. Read the extract and evaluate
The following information appeared in the notes to the financial statements as reported in the 2019 Annual Report of Qantas Airways. You are required to explain the nature of each of these intangible
As goodwill is not to be amortised, does this mean that the balance of goodwill can be carried forward indefinitely?
In an article by Carrie La Frenz entitled ‘Hastie auditor rejects PPB concerns’ that appeared in The Australian Financial Review on 22 January 2013 (p. 16) and which is adapted here, it was
What is a heritage asset?
What are some of the characteristics of a heritage asset?
Is there general agreement within the ‘accounting community’ that heritage assets should be measured in monetary terms?
What are some of the differences between heritage assets and assets that are typically held by privatesector entities?
Do heritage assets seem to comply with the definition of assets provided within the Conceptual Framework?
What attributes of heritage assets would support the notion that they need to be accounted for differently from other assets?
Do you think that heritage assets should be classified as assets pursuant to the Conceptual Framework for Financial Reporting? Explain your answer with particular reference to the definition and
Carnegie and West (2005) state that ‘full accrual accounting systems are now being applied to a range of public-sector institutions that have no profit making nor financial wealth maximisation
Because heritage assets typically generate negative net cash flows, some authors have argued that they should be treated as liabilities and not as assets. Do you agree with such a view? Why?
AASB 116 permits ‘heritage and cultural assets’ to be revalued. What would be some potential problems in revaluing heritage assets?
Explain and contrast the valuation suggestions made by Carnegie and Wolnizer in relation to national parks that are considered to be heritage assets and the valuation suggestions of Roberts, Staunton
How would you value a biological asset used within, or generated by, agricultural activities, and how are changes in valuation to be treated for the purposes of an entity’s profit or loss?
What types of non-financial disclosures are required by AASB 141?
Would you consider that the accountability of managers of heritage assets is best demonstrated by requiring them to provide up-to-date valuations of the ‘assets’ under their control? Explain your
Do you think that we should have different asset definitions for not-for-profit organizations and for-profit organizations? Explain your answer.
Do you consider that lack of consistency across entities in the accounting treatment of particular items (for example, the measurement of biological assets) is sufficient justification for the
Roberts, Staunton and Hagan (1995) suggest that increases in the valuation of livestock can be broken down into two components:1. Changes in current market value as a result of biological factors,
Briefly explain how the method of valuation known as the contingent-valuation method is applied.
Briefly explain how the method of valuation known as the travel-cost method is applied.
Apart from the disclosures specifically required by AASB 141, what sustainability/environmentally-related disclosures would you suggest that a company with, for example, large herds of dairy cattle
Evaluate the following comment:Some cultural or heritage assets are so important that their ‘worth’ should not be reflected by any form of monetary valuation. That is, they are beyond pricing and
In an article that appeared in The Australian Financial Review on 15 December 2018 entitled ‘Australian Museum collection hits $1 billion mark’ (by Elouise Fowler, p. 3), it was reported that Kim
A recent annual report of the City of Sydney Council did not include library books on the statement of financial position, notwithstanding the existence of a substantial library collection. The City
In the April 1998 edition of Charter, an article appeared on self-generating and regenerating (biological) assets. In the article it is noted that:The main criticism against net market value
Carnegie and West (Reprinted from CARNEGIE, G.D. & WEST, B.P., 2005, ‘Making Accounting Accountable in the Public Sector’, Critical Perspectives on Accounting, vol. 16, p 910, with permission
It was reported within the chapter that some years ago the chairperson of Australia’s biggest wine producer, Southcorp Ltd, was critical of the requirements incorporated within AASB 141 because it
How would you value a museum collection of ancient Aboriginal artefacts?
Carnegie and Wolnizer (1995, ‘The Financial Value of Cultural, Heritage and Scientific Collections: An Accounting Fiction’, Australian Accounting Review, vol. 5, no) argue that quantifying
What types of information do you believe a government-funded museum should provide to reflect its performance, and what could be the purpose of providing the information you suggest?
Read the following adaptation of an article entitled ‘CBA in payout on “toxic” products’ by Leo Shanahan that appeared in The Australian on 4 April 2015.In 2012 a claim was lodged in the
Read the following extract from an article entitled ‘Tanks to go at old refinery’ by Cameron England that appeared in The Advertiser on 17 September 2012.The demolition of the Port Stanvac oil
In an article entitled ‘Nailed. Father’s discovery sparks punching bag recall’ by Angus Thompson which appeared in The Advertiser on 11 March 2015 it was reported that:father’s claims that he
Read the extract below from an article entitled ‘Suits overshadow the Ts at American Apparel’ by Joann Lublin that appeared in The Australian on 28 May 2015. Nearly a year after moving to
Elwood Chemicals Ltd has, as a result of its ongoing operations, contaminated the land on which it operates. There is no legal requirement to clean up the land.REQUIREDShould Elwood Chemicals Ltd
Sandringham Mining Ltd has been mining in a particular coastal area. A requirement of the local Environmental Protection Authority is that the area be restored to a state that is beneficial to the
In an article entitled ‘Berry nasty’ that appeared in the Courier Mail on 15 February 2015 (by Greg Stolz), it was reported that people who had eaten a well-known brand of frozen berries were
In a newspaper article of 8 November 2018 entitled ‘BHP faces $9b dam lawsuit’ (in The Australian Financial Review, by Will Willitts, p. 19), it was reported that BHP faces a £5 billion ($9
All things being equal, the managers of an organization would generally prefer to disclose a transaction as part of equity, rather than debt. Why?
Company X presents the following instruments within the ‘Shareholders’ equity’ section of its statement of Financial position:Redeemable preference sharesPerpetual convertible notesPreference
Showing 1400 - 1500
of 6996
First
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Last