GR-3- Exercise-2.10-3.4 20.1A - Tài liệu tham khảo | Đại học Hoa Sen

GR-3- Exercise-2.10-3.4 20.1A - Tài liệu tham khảo | Đại học Hoa Sen và thông tin bổ ích giúp sinh viên tham khảo, ôn luyện và phục vụ nhu cầu học tập của mình cụ thể là có định hướng, ôn tập, nắm vững kiến thức môn học và làm bài tốt trong những bài kiểm tra, bài tiểu luận, bài tập kết thúc học phần, từ đó học tập tốt và có kết quả cao cũng như có thể vận dụng tốt những kiến thức mình đã học.

Group 3:
Vũ Trần Nhã Đoan
Nguyễn Phạm Thanh Phương
Nguyễn Thành Mỹ Duyên
Nguyễn Minh Nguyệt
Mai Tấn Quân
Nguyễn Tiến Dũng
Nguyễn Ngọc Như Ý
Nguyễn Lê Ngọc Diễm
Lê Thị Kim Quý
EXERCISE 2.10
1. With the recognition of increase in land value by $1.5 million and decrease in
building value by 1.7 million dollars, this allocation will increase future income as the
land is non-asset depreciated. Thus, the company's pre-tax profit will increase to $0.5
million.
2. The assistant faces an ethical dilemma because if he does according to the
controller's allocation method, will not meet the principle of recognizing assets as
“Cost must be determined reliably” and does not follow the accounting principle
maths. But if the assistant doesn't follow through, he may be disciplined for
increasing the difficulty problems with the company's profitability.
EXERCISE 3.4
(i)
In this case, CGU is a plant in Alandia as a whole, as individual assets do not generate
cash inflows largely independently from others.
Calculation of value in use (EUR ‘000)
Year Cash flow Discount factor at 5% Present value
1- 20X4 10,200 1/(1+5%)=0,952 9,714
2- 20X5 9,550 1/(1+5%)^2=0,907 8,662
3- 20X6 8,900 1/(1+5%)^3=0,864 7,688
4- 20X7 8,250 1/(1+5%)^4=0,823 6,787
5- 20X8 7,600 1/(1+5%)^5=0,784 5,955
6- 20X9 6,950 1/(1+5%)^6=0,746 5,186
7- 20X10 6,300 1/(1+5%)^7=0,711 4,477
8- 20X11 5,650 1/(1+5%)^8=0,677 3,824
9- 20X12 5,000 1/(1+5%)^9=0,645 3,223
10- 20X13 4,350 1/(1+5%)^10=0,614 2,671
72,750 58,188
Present value of decommissioning in 20X13 -15000
Value in use 58,188 -15000=43,188
Discount Factor Formula used: DF= 1/(1+r)^year
Calculation of recoverable amount (EUR ‘000)
Value in use 43,188
Fair value less cost to sell 42,000
Recoverable amount as of 30 Dec 20X3 (higher of): 43,188
Calculation of impairment loss (EUR ‘000)
Carrying amount
Reactors, tower, store, equipment 55,000
Other technical facilities 8,000
Administrative building 2,000
Less Provision for decommissioning and restoration costs -15,000
Carrying amount as of 31 Dec 20X3 50,000
Recoverable amount as of 31 Dec 20X3 43,188
Impairment loss as of 31 Dec 20X3 6,812
Allocation of impairment loss (EUR ‘100)
Asset Carrying
Amount
% of total value
(G)
Allocated
impairment loss
(G*E)
Reactors, tower, store,
equipment
55,000 55,000/65,000*100
%= 84,62%
5,758
Other technical facilities 8,000 8,000/65,000*100%
= 12,31%
838
Administrative building 2,000 2,000/65,000*100%
= 3,08%
209
65,000 100,00% 6.805
(ii) Prepare journal entries to record the Impairment loss
DR Profit or loss -
Impairment loss
6,805
CR PPE (Reactors, tower, store,
equipment)
5,758
CR PPE (Other technical facilities) 838
CR PPE (Administrative building) 209
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Group 3: Vũ Trần Nhã Đoan Nguyễn Phạm Thanh Phương Nguyễn Thành Mỹ Duyên Nguyễn Minh Nguyệt Mai Tấn Quân Nguyễn Tiến Dũng Nguyễn Ngọc Như Ý Nguyễn Lê Ngọc Diễm Lê Thị Kim Quý EXERCISE 2.10
1. With the recognition of increase in land value by $1.5 million and decrease in
building value by 1.7 million dollars, this allocation will increase future income as the
land is non-asset depreciated. Thus, the company's pre-tax profit will increase to $0.5 million.
2. The assistant faces an ethical dilemma because if he does according to the
controller's allocation method, will not meet the principle of recognizing assets as
“Cost must be determined reliably” and does not follow the accounting principle
maths. But if the assistant doesn't follow through, he may be disciplined for
increasing the difficulty problems with the company's profitability. EXERCISE 3.4 (i)
In this case, CGU is a plant in Alandia as a whole, as individual assets do not generate
cash inflows largely independently from others.
Calculation of value in use (EUR ‘000) Year Cash flow Discount factor at 5% Present value 1- 20X4 10,200 1/(1+5%)=0,952 9,714 2- 20X5 9,550 1/(1+5%)^2=0,907 8,662 3- 20X6 8,900 1/(1+5%)^3=0,864 7,688 4- 20X7 8,250 1/(1+5%)^4=0,823 6,787 5- 20X8 7,600 1/(1+5%)^5=0,784 5,955 6- 20X9 6,950 1/(1+5%)^6=0,746 5,186 7- 20X10 6,300 1/(1+5%)^7=0,711 4,477 8- 20X11 5,650 1/(1+5%)^8=0,677 3,824 9- 20X12 5,000 1/(1+5%)^9=0,645 3,223 10- 20X13 4,350 1/(1+5%)^10=0,614 2,671 72,750 58,188
Present value of decommissioning in 20X13 -15000 Value in use 58,188 -15000=43,188
Discount Factor Formula used: DF= 1/(1+r)^year
Calculation of recoverable amount (EUR ‘000) Value in use 43,188 Fair value less cost to sell 42,000
Recoverable amount as of 30 Dec 20X3 (higher of): 43,188
Calculation of impairment loss (EUR ‘000) Carrying amount
Reactors, tower, store, equipment 55,000 Other technical facilities 8,000 Administrative building 2,000
Less Provision for decommissioning and restoration costs -15,000
Carrying amount as of 31 Dec 20X3 50,000
Recoverable amount as of 31 Dec 20X3 43,188
Impairment loss as of 31 Dec 20X3 6,812
Allocation of impairment loss (EUR ‘100) Asset Carrying % of total value Allocated Amount (G) impairment loss (G*E) Reactors, tower, store, 55,000 55,000/65,000*100 5,758 equipment %= 84,62% Other technical facilities 8,000 8,000/65,000*100% 838 = 12,31% Administrative building 2,000 2,000/65,000*100% 209 = 3,08% 65,000 100,00% 6.805
(ii) Prepare journal entries to record the Impairment loss DR Profit or loss - 6,805 Impairment loss
CR PPE (Reactors, tower, store, 5,758 equipment)
CR PPE (Other technical facilities) 838
CR PPE (Administrative building) 209