Long-lived Assets II
About the Lecture
The lecture Long-lived Assets II by Edu Pristine is from the course Archiv - Financial Reporting and Analysis. It contains the following chapters:
- Calculate Amortization Expense
- The Revaluation Model
- Impairment
- Derecognition
- Fixed Assets disclosures
- Financial Reporting of Investment Property
Author of lecture Long-lived Assets II
Edu Pristine
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Excerpts from the accompanying material
... Agreement costs $2 Million. Both of them expire in 10 years but the Franchise agreement can be renewed at a minimu m cost. Find the amortization cost for the first year using d ouble decline balance ...
... Answer: Since the Franchise Agreement can be renewed at minimum costs, it is considered to have an indefinite life and doe sn t need to me ...
... There must be consistency within the asset-class to avoid selective revaluation. " Under the revaluation method", Carrying amounts = Fair values at the date of revaluation ...
... "Use of the revaluation model may result in the increase in values of long-lived assets to amounts greater than histori cal costs." Revaluation of intangible assets is only possible when there is an active market for that asset. ...
... III. IFRS 1. The reporting of long lived assets at fair value is permitted. ...
... However under IFRS apart from depreciated cost, long li ved assets can also be reported at their fair value if it can be reliably ...
... If a long-lived asset is impaired, the loss should be immediately recognized as a loss on the income statement. The loss is equal to the excess of carrying value over the asset's fair market value (if known). ...
... "The process is same for intangible assets xpt." Goodwill is considered impaired if the carrying value of the reporting unit. ...
... l : "allows for ovryof impairment loss on all assets " t: "Impairment results in lower assets and lower equity." In the year of impairment ROE and ROA will be lower. ...
... XYZ has received $600,000 as goodwill of ABC s acquisition. Sometime after purchase fair value of the a set has changed as follow, decide whether the recorded goodwill is subject to impairment or not and if it is su bject to impairment, calculate the impairment loss. ...
... With impairment loss of $100,000. Implied goodwill = $5,000,000 - $4,500,000 ...
... Impairment loss under IFRS is: A. $15,000 loss B. $10,000 loss ...
... Correct answer is $15,000 loss Under IFRS an asset is impaired if it s carrying value >recoverable amount Recoverable amount = Maximum. ...
... Which of the following statement about intangible asse t is least accurate? A. Estimating useful lives of intangible assets is complicated because of legal, regulatory, contractual & economic factor . B. An intangible asset having a specific expiration period which can be renewed at a minimum cost is considered to have an indefinite life. In such a case no amortization is required but the asset is tested at least annually for the assets loss is recognized on the income statement C.When an asset is exchanged for another, the difference between their values is recorded as a profit/loss in the income statement. ...
