• What is the impact on (a) expenses, (b) equity, and (c) cash if an asset is carried at cost, and that amount is used as the depreciable amount allocated over the asset’s useful life instead of its revaluation amount? Use figures to explain and justify the answer.

• Using NZ IAS 1 Presentation of Financial Statements to discuss whether the cars for (a) a car dealer and for (b) a Limited Liability company manufacturing aluminum window frames would be classified as a current or as a non-current asset.

• Who should have the responsibility and the authority to choose companies’ accounting policies? Management, the government, the auditor, an independent board, someone else, or a combination of these people/institutions? Justify answer.

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Lets break down your questions step by step Impact of Carrying an Asset at Cost vs Revaluation a Expenses When an asset is carried at cost the expenses related to that asset are primarily related to d... View the full answer