EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Question
Chapter 19, Problem 29DQP
a.
To determine
State the section in FASB codification that addresses property, plant, and equipment and also the subsection that provides disclosure requirements.
b.
To determine
State the disclosures for fixed assets that should be made in financial statements or footnotes to the statements.
c.
To determine
State the information that must be disclosed in footnotes to the financial statements for the period where the impairment loss is recognized.
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Directions: Read and analyze the following standards and answer what is required.
Required:
Write the definition, recognition, measurement and derecognition if any in the chart above provided for the following:
Intangible assets
Impairment of assets
Investment property
Agriculture
Borrowing cost
Government grant
Write the definition, recognition, measurement and derecognition if any provided for the following:
Intangible assets
Impairment of assets
Investment property
Agriculture
Borrowing cost
Government grant
The accountant has asked your team to explain to the intern of the other team the treatment for interest capitalization when accounting for self-constructed assets. In preparing your presentation notes, be sure to address the following. Paragraph citations are to be provided with answers where applicable.
What is the objective of capitalising interest?
What is meant by a qualifying asset?
Identify the assets which may qualify for interest capitalization.
If interest capitalization is allowed, what disclosures are required?
Compute the amount of interest to be capitalised. Provide detailed workings. Round to 2 decimal places.
What was the capitalised cost of the new office building on the statement of financial position.
Chapter 19 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 19 - Identify three asset accounts, three expense...Ch. 19 - Explain the relationship between substantive tests...Ch. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Which documents will be used to verify accrued...
Ch. 19 - Prob. 11RQCh. 19 - Prob. 12RQCh. 19 - Prob. 13RQCh. 19 - Prob. 14RQCh. 19 - Prob. 15.3MCQCh. 19 - Prob. 15.1MCQCh. 19 - Prob. 15.2MCQCh. 19 - Prob. 16.1MCQCh. 19 - Prob. 16.2MCQCh. 19 - Prob. 16.3MCQCh. 19 - Prob. 17.1MCQCh. 19 - Prob. 17.3MCQCh. 19 - Prob. 17.2MCQCh. 19 - Prob. 18.1MCQCh. 19 - Prob. 18.2MCQCh. 19 - Prob. 18.3MCQCh. 19 - Prob. 19DQPCh. 19 - Prob. 20DQPCh. 19 - Prob. 21DQPCh. 19 - Prob. 22DQPCh. 19 - Prob. 23DQPCh. 19 - Prob. 24DQPCh. 19 - You are auditing the financial statements of...Ch. 19 - Prob. 29DQPCh. 19 - Prob. 26DQPCh. 19 - Prob. 27DQPCh. 19 - Prob. 28DQP
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- Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.arrow_forwardExplanation on the disclosure requirements for the accounting treatment of the intangible asset MRFS/ IRFS 138. Clear example with explanation on recognition , measurements , disclosure requirements for accounting treatment on intangible asset.arrow_forwardFASB recently issued a Proposed Accounting Standard Update on impairment for intangible assets. What is the primary purpose for FASB to issue Proposed Accounting Standards Updates?arrow_forward
- Explanation on the recognition, measurement and disclosure requirements for the accounting treatment MRFS 138 intangible asset with clear details on scenariosarrow_forwardThe Land held for future investment will appear in a classified statement of financial position in the section of Long term investment Intangible assets Property. Plant, and Equipment O Current Assetsarrow_forwardi）State the recognition criteria for an intangible asset. ii）Briefly explain the recognition criteria for the research and development costs. iii）arrow_forward
- Access the Codification glossary (“Master Glossary”) to answer the following. a. What is the definition provided for an intangible asset? b. What is the definition of goodwill? c. What is the definition of research and development (R&D)? d. What is a development stage entity?arrow_forwardExplanation on the recognition, measurement and disclosure requirements for the accounting treatment MRFS 138 intangible asset with clear detailsarrow_forwardWhich of the following accounts would be included in the property, plant, and equipment category of the classified balance sheet? Land held for investment Accumulated Depreciation Office Supplies Mortgage Payablearrow_forward
- Identify the following as intangible assets (IA), natural resources (NR), or some other asset (O). Trademarkarrow_forwardFor each of the statements below, state the types of intangible assets that best suit them. (i) A sign which distinguishes the goods and services of one entity from those of another.(ii) A form of protection provided by the law to authors of original creative works, including literary works, musical works, artistic works, films, sound recordings, and broadcasts.(iii) The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use.(iv) A method of marketing and distributing products and services based on a two-party contract.(v) An exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem.(vi) A license is required in order to use properties or rights owned by other entities, such as broadcasting licenses for…arrow_forwardAccess the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: 1. Depreciation involves a systematic and rational allocation of cost rather than a process of valuation. 2. The calculation of an impairment loss for property, plant, and equipment. 3. Accounting for a change in depreciation method. 4. Goodwill should not be amortized.arrow_forward
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