#ACCA #DipIFR #IAS_36
IAS 36 : Impairment of assets
The asset is measured at the LOWER of :
1- CARRYING AMOUNT and
2 - RECOVERABLE AMOUNT.
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) and
2- Fair value less cost to sell
Example : for an asset (a CGU) we have :
Cost = 1000.
Accumulated Depreciation = 300
Value in use= 350
Fair value less cost to sell = 400
Impairment?
Answer:
Carrying amount = 1000-300=700
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) = 350
2- Fair value less cost to sell = 400
So recoverable amount = 400
Value of the asset:
LOWER of :
1- CARRYING AMOUNT = 700
2 - RECOVERABLE AMOUNT = 400
So the asset should be IMPAIRED.
Impairment loss = 700 - 400 = 300
@MansoorMizbani
@ACCAIrann
IAS 36 : Impairment of assets
The asset is measured at the LOWER of :
1- CARRYING AMOUNT and
2 - RECOVERABLE AMOUNT.
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) and
2- Fair value less cost to sell
Example : for an asset (a CGU) we have :
Cost = 1000.
Accumulated Depreciation = 300
Value in use= 350
Fair value less cost to sell = 400
Impairment?
Answer:
Carrying amount = 1000-300=700
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) = 350
2- Fair value less cost to sell = 400
So recoverable amount = 400
Value of the asset:
LOWER of :
1- CARRYING AMOUNT = 700
2 - RECOVERABLE AMOUNT = 400
So the asset should be IMPAIRED.
Impairment loss = 700 - 400 = 300
@MansoorMizbani
@ACCAIrann
Question⁉️
a company decides to dispose one of its subsidiary. Carrying value of the subsidiary is as follows :
PPE 20
Goodwill 10
Other intangible assets except goodwill 8
After classification as ahfs F.V-CTS=21 and at the year end F.V-CTS increases to 30.
What are the entries?
Answer ✅
AHFS (Asset Held For Sale) is mpaired by $17m from $38m (carrying value) to FV-CTS=$21m
It must be allocated:
1-first to the goodwill as much as possible.(in this case 10)
2-then to other assets based on pro rata basis
So 17-10=7 and
-ppe:7*(20/28)=5
-other intangible assets:7*(8/28)=2
So entries are:
Dr SoPoL 17
Cr goodwill 10
Cr PPE 5
Cr other intangible assets 2
For reversal: we must reverse to the maximum amount of previous impairment but we are not allowed to reverse impairment on goodwill so:
Dr PPE 5
Dr other intangible assets 2
Cr SoPoL 7
SoPoL: Statement of Profit or Loss
Note:
1- We are not allowed to reverse back $2m for goodwill.
Source: Dipifr- dec 2013-Q2b(amended)
#DipIFR
@MansoorMizbani
@ACCAIrann
a company decides to dispose one of its subsidiary. Carrying value of the subsidiary is as follows :
PPE 20
Goodwill 10
Other intangible assets except goodwill 8
After classification as ahfs F.V-CTS=21 and at the year end F.V-CTS increases to 30.
What are the entries?
Answer ✅
AHFS (Asset Held For Sale) is mpaired by $17m from $38m (carrying value) to FV-CTS=$21m
It must be allocated:
1-first to the goodwill as much as possible.(in this case 10)
2-then to other assets based on pro rata basis
So 17-10=7 and
-ppe:7*(20/28)=5
-other intangible assets:7*(8/28)=2
So entries are:
Dr SoPoL 17
Cr goodwill 10
Cr PPE 5
Cr other intangible assets 2
For reversal: we must reverse to the maximum amount of previous impairment but we are not allowed to reverse impairment on goodwill so:
Dr PPE 5
Dr other intangible assets 2
Cr SoPoL 7
SoPoL: Statement of Profit or Loss
Note:
1- We are not allowed to reverse back $2m for goodwill.
Source: Dipifr- dec 2013-Q2b(amended)
#DipIFR
@MansoorMizbani
@ACCAIrann
QUESTION⁉️
At the end of 1st year :
Revenue (based on accounting standards) = 100.000
Revenue ( Tax-based ) = 80.000
The difference is because of temporary tax differences.
Tax rate = 10%
calculae the DEFERRED TAX ?
ANSWER ✅
(100.000-80.000) * 10% = 2.000
Dr Tax expense (SoPoL) 2.000
Cr Deferred Tax Liability (SoFP) 2.000
SoPoL = Statement of Profit or Loss
SoFP = Statement of Financial Position
Note:
1 - TEMPORARY deferred tax is due to TIMING difference.
2 - More income (based on accounting standards) causes to DEFERRED TAX LIABILITY.
3 - The entry is SMOOTHING the income over the affected YEARS.
#IAS_12
#DipIFR
#ACCA
@MansoorMizbani
@ACCAIrann
At the end of 1st year :
Revenue (based on accounting standards) = 100.000
Revenue ( Tax-based ) = 80.000
The difference is because of temporary tax differences.
Tax rate = 10%
calculae the DEFERRED TAX ?
ANSWER ✅
(100.000-80.000) * 10% = 2.000
Dr Tax expense (SoPoL) 2.000
Cr Deferred Tax Liability (SoFP) 2.000
SoPoL = Statement of Profit or Loss
SoFP = Statement of Financial Position
Note:
1 - TEMPORARY deferred tax is due to TIMING difference.
2 - More income (based on accounting standards) causes to DEFERRED TAX LIABILITY.
3 - The entry is SMOOTHING the income over the affected YEARS.
#IAS_12
#DipIFR
#ACCA
@MansoorMizbani
@ACCAIrann
IAS 36 : Impairment of assets
The asset is measured at the LOWER of :
1- CARRYING AMOUNT and
2 - RECOVERABLE AMOUNT.
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) and
2- Fair value less cost to sell
Example : for an asset (a CGU) we have :
Cost = 1000.
Accumulated Depreciation = 300
Value in use= 350
Fair value less cost to sell = 400
Impairment?
Answer:
Carrying amount = 1000-300=700
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) = 350
2- Fair value less cost to sell = 400
So recoverable amount = 400
Value of the asset:
LOWER of :
1- CARRYING AMOUNT = 700
2 - RECOVERABLE AMOUNT = 400
So the asset should be IMPAIRED.
Impairment loss = 700 - 400 = 300
#ACCA
#DipIFR
#IAS_36
@MansoorMizbani
@ACCAIrann
The asset is measured at the LOWER of :
1- CARRYING AMOUNT and
2 - RECOVERABLE AMOUNT.
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) and
2- Fair value less cost to sell
Example : for an asset (a CGU) we have :
Cost = 1000.
Accumulated Depreciation = 300
Value in use= 350
Fair value less cost to sell = 400
Impairment?
Answer:
Carrying amount = 1000-300=700
Recoverable amount is the HIGHER of:
1- Value in Use (Present value) = 350
2- Fair value less cost to sell = 400
So recoverable amount = 400
Value of the asset:
LOWER of :
1- CARRYING AMOUNT = 700
2 - RECOVERABLE AMOUNT = 400
So the asset should be IMPAIRED.
Impairment loss = 700 - 400 = 300
#ACCA
#DipIFR
#IAS_36
@MansoorMizbani
@ACCAIrann
exposure_draft_reference_to_the.pdf
207.1 KB
📣📣📣IFRS UPDATE📣📣📣
The IASB has today published for public consultation proposed narrow-scope amendments to IFRS 3 Business Combinations. The amendments would update a reference to the Conceptual Framework without changing the accounting requirements for business combinations.
Comment deadline: 27 September.
Download the Exposure Draft
امروز IASB پیش نویس اصلاحات محدود پیشنهادی در ارتباط با IFRS 3 را برای نظر خواهی منتشر کرد. این اطلاحات سه مورد هستند که در راستای تغییر چارچوب نظری در سال 2018 علی الخصوص در مورد تعریف دارایی ها و بدهی ها می باشند. لازم به ذکر است با این اصلاحات در الزامات حسابداری برای ترکیب های تجاری تغییری ایجاد نمی شود.
مهلت ارسال نظرات تا 27 سپتامبر می باشد.
#IFRS #FM #SBR #DipIFR
💎 @ACCAIrann
The IASB has today published for public consultation proposed narrow-scope amendments to IFRS 3 Business Combinations. The amendments would update a reference to the Conceptual Framework without changing the accounting requirements for business combinations.
Comment deadline: 27 September.
Download the Exposure Draft
امروز IASB پیش نویس اصلاحات محدود پیشنهادی در ارتباط با IFRS 3 را برای نظر خواهی منتشر کرد. این اطلاحات سه مورد هستند که در راستای تغییر چارچوب نظری در سال 2018 علی الخصوص در مورد تعریف دارایی ها و بدهی ها می باشند. لازم به ذکر است با این اصلاحات در الزامات حسابداری برای ترکیب های تجاری تغییری ایجاد نمی شود.
مهلت ارسال نظرات تا 27 سپتامبر می باشد.
#IFRS #FM #SBR #DipIFR
💎 @ACCAIrann