Impairment Loss and Accounting Entries

Question: Discuss about the Impairment Loss and Accounting Entries. Answer: Introduction The accounting framework followed in Australia prescribes the accounting standard 136 (AASB 136) to deal with the accounting treatment of the impairment loss (AASB 136, 2007). The impairment loss has been defined as the amount worked out by deducting the recoverable amount from the carrying amount of the asset (Dagwell, Wines, and Lambert, 2011). In the context of this, an essay has been presented here describing the nature of impairment loss and the requirement for its discloser in the financial statements of an entity. This essay covers the discussion on the impairment loss from the accounting view point in the light of the Australian accounting standards. Nature of Impairment Loss The impairment loss is necessary to recognise to bring the assets at the value that would the entity fetch if the assets are sold in the market. The assets are initially recognised at cost in the books of accounts and then re-valued from time to time as per the prevailing market conditions. The accounting principle of prudence requires that the entity should immediately account for the foreseeable losses while the future gains should be ignored until their realisation is ensured (Mukherjee and Hanif, 2003). This implies that the assets should not be overstated and the liabilities should not be understated in the books of accounts of an entity. If there are conditions that indicate that the assets may be overstated, the entity should recognise the impairment loss immediately and bring the asset at the recoverable value (Mukherjee and Hanif, 2003). As per the provisions enunciated in the accounting standard 136, the impairment loss is recognized on all the assets except inventories, deferred tax assets, investment property dealt with as per AASB 140, and few other categories (AASB 136, 2007). This implies that the impairment loss is primarily recognized on the non-current assets such as plant and equipment, building, furniture, and intangibles. Further, it has been provided that the assets are to be considered individually for the computation of the impairment loss. However, where is impracticable to segregate the assets, the impairment loss is to be computed with reference to the entire unit, which is called the cash generating unit (CGU) (AASB 136, 2007). The computation of the impairment loss is made with reference to the carrying amount and the recoverable amount of the assets or CGU. The carrying amount is simply the value at which the assets have been shown in the books of accounts by the entity (Stickney et al., 2009). However, the computations are required for recoverable amount, which is computed with reference to the fair value and value in use of the assets or CGU. The recoverable amount is the higher of fair value less the expenses required to realize the asset and the value in use. Here the value in use is computed by discounting the future cash flows expected from the use of the asset or the CGU. The effectively the impairment loss could be computed as follows (Stickney et al., 2009): Impairment Loss= Carrying amount - [higher of fair value-expenses or value in use] The test for impairment is to be performed at each balance sheet date wherein the entity is required to collect and analyse the information from the internal as well as external sources (AASB 136, 2007). If the analysis of the information indicates that the recoverable amount of assets or CGU is less than the amount at which the assets are carried in the balance sheet, the impairment loss is provided for in the books and assets are restated at the recoverable amount. However, it may be noted here that the test for impairment in case of intangible assets is to be carried out at each balance sheet date disregarding the fact that there was not any indication for such test (AASB 136, 2007). In regard to recognition of the impairment loss, it has been observed that the same is to be charged to the profit and loss account unless there is existing revaluation reserve. If the revaluation reserve is available in respect of the asset which has been impaired, the impairment loss first is to be charged to the revaluation reserve and then the remaining to be charged to the profit and loss account (Ernst and Young LLP, 2015). Further, the carrying amount of the asset is reduced by the amount of impairment loss. Discloser Requirement in Case of Impairment Loss There are detailed discloser requirements in respect of the impairment loss to be followed by the entities in preparation and presentation of the financial statements. As per the provisions contained in the accounting standard, the entity is required to disclose the impairment loss in the profit and loss account as a separate line item (ICAA, 2012). Further, the entity shall also disclose the impairment loss in the notes to accounts pertaining to the impaired asset. The impairment loss is to be shown as a deduction from the carrying amount of the impaired asset. In addition to this, the entity is also required to disclose the events or circumstances which formed the basis for recognition of the impairment loss (AASB 136, 2007). Further, in respect of a cash generating unit, the entity shall disclose the description of all the assets identified as cash generating unit and the basis on which the assets were clubbed under the cash generating unit. Additionally, the impairment loss on cash generating unit is to be allocated on individual assets based on their carrying amount and to be disclosed in the notes to accounts. Apart from this, the entity is also required to disclose the basis used to compute the cash flows for computation of the value in use (AASB 136, 2007). Conclusion From the discussion, it may be articulated that the recognition of the impairment loss is a matter of financial prudence and thus, the entities should adhere to it. The nature of impairment loss, its measurement, and the discloser requirements have been discussed in this essay, which will help the entities in complying with the provisions of the accounting framework. Journal Entries for Impairment Loss Crossbow Ltd: Computation of Impairment Loss for Cash Generating Unit Amount ($) A Carrying Amount of Cash Generating Unit (Excluding Inventory) 1,500,000.00 B Recoverable Amount of Cash Generating Unit 1,420,000.00 C Impairment Loss (A-B) 80,000.00 Note: The inventories are not tested for impairment, hence excluded. The total impairment loss of $80,000 is to be allocated to the individual assets in proportion to their carrying amount. However, it should be noted that the impairment loss is first to be allocated to write of the goodwill and then the remaining amount is to be allocated to other assets in proportion to their carrying amount. Further, it is also to be noted that the impairment loss can not be allocated to the individual asset in excess of the difference of its individual carrying amount and the individual fair value net of selling expenses. In the light of these provisions, the allocation of impairment loss has been presented in the table given below: Allocation of the Impairment Loss to Individual Assets Assets Carrying Amount Impairment Loss Goodwill 40,000.00 40,000.00 Land (2/14.60)*40000 200,000.00 5,479.45 Brand 'Crossbow Shoes' (1.6/14.60)*40000 160,000.00 4,383.56 Shoe Factory (7/14.60)*40000 700,000.00 19,178.08 Machinery (4/14.60)*40000 400,000.00 10,958.90 Total 1,460,000.00 40,000.00 Journal Entry for Impairment Loss Description Debit ($) Credit ($) Impairment Loss 80,000.00 Goodwill 40,000.00 Accumulated impairment losses Land 5,479.45 Accumulated amortization and impairment losses brand 4,383.56 Accumulated depreciation and impairment losses Factory 19,178.08 Accumulated depreciation and impairment losses Machinery 10,958.90 References AASB 136. (2007). Impairment of Assets. [Online]. Available at: https://www.aasb.gov.au/admin/file/content105/c9/AASB136_07-04_COMPapr07_07-07.pdf [Accessed on: 20 September 2016]. Dagwell, R., Wines, G., and Lambert, C. 2011. Corporate accounting in Australia. Pearson Higher Education AU. Ernst and Young LLP. 2015. International GAAP 2016: generally accepted accounting principles under international financial reporting standards. John Wiley Sons. ICAA. 2012. Chartered accountants financial reporting handbook 2012, Google Ebook. John Wiley Sons. Mukherjee and Hanif. 2003. Financial accounting. Tata McGraw-Hill Education. Stickney, C.P., Weil, R.L., Schipper, K., and Francis, J. 2009. Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.

Symbolism in the Stranger Essay Example For Students

Symbolism in the Stranger Essay Examine Comus use of symbolism in part one of The Stranger. In your answer, you must discuss the connection between the symbolism and the character of Mersault.  In the chapter one of the novel, we can all see several uses of symbolism to portray the character Mersault. Because the narrator of the book itself is Mersault himself, who feels very little emotion or none at all. Because Mersault barely discuss about his emotions and feelings. Camus use of symbolism creates connection to the character of Mersault. Mersault has been discovered to be annoyed by heat, light and the sun. He finds these unbearable and a hindrance to him. When Mersault was walking to the church, he finds himself quite annoyed by the strong light and heat. He expresses that it was inhuman and oppressive. During this walk, Mersault was quite tired and annoyed. Strong heat and light is the symbol of his frustration. Same use of symbolism can be found on page 57 when Mersault is on the beach watching over the Arabs. We will write a custom essay on Symbolism in the Stranger specifically for you for only $16.38 $13.9/page Order now It reads, there was the same dazzling red glare all that heat was pressing down on me This took place after the Arabs brutally attacked and assaulted Raymond injuring him. Mersault held the gun and started to shoot the Arab because he was annoyed by the light reflecting from Arabs knife on his face. Shot the Arab once and again four more time with no remorse whatsoever. The book says that the light took control over Mersault and caused him to do the shooting. Mersault himself doesnt quite know why exactly he did the shooting of the Arab who was the brother of the Mistress, but he blames the light. Overpowering heat and the light also acts as a warning. Mersaults attitude also displays that he is an outcast of society. Besides the fact that he does not have emotions or feelings at all, he doesnt quite fit into the society because he himself prefers being a social outcast. On page 25, Mersault mentions about a hand towel in his office. Mersault liked washing hands during lunchtime since on that time, the hand towel is quite dry and it has to last all day. Mersault dislikes wiping hands on a soaked towel. This symbolizes that he puts himself away from everyone else. The soaked towel at his working place symbolizes the society. After many of the other workers wiping their hands on the same towel, it is soaked wet. Mersault prefers wiping his hands when its dry, before everybody else. He places himself from everybody else, he tries but he is different. He is not easily understood by others, which is also the reason why he is the outcast. And he keeps to himself almost all of the time. Mersaults lack of emotion is also shown in his response to his neighbors. When Raymond was talking about how he was beating up and harassing his girlfriend until she bled, Mersault showed no interest and reacted almost like it was nothing. He says, it didnt matter. This attitude towards such event is greatly different from others. Others may be disgusted and horrified by this incident and react to it, but to Mersault its nothing. Mersault just sits there and just listens to Raymond. Not all that would cause Mersault to do something, he just listens. When Salamanos dog went missing, Mersault again feels nothing change he didnt care anyway. Even after witnessing and overhearing Salamano weeping next door, Mersault seems to be not interested. Mersault lacks emotional feelings, which is not accepted by society.  The use of symbolism that this novel contains tells a lot about the void character of Mersault. The readers should be able to read between the lines in order to fully understand what these symbols are, and how that tells about Mersaults characteristics.

Tips For Writing A Comparitve Analysis Sample Essay

Tips For Writing A Comparitve Analysis Sample EssayA comparative analysis sample essay is the perfect first writing project for college students. The most important aspect to a comparative analysis sample essay is that it should be written to a high standard, and at the same time, should also answer all of the questions in the subject.In college it is extremely important to write your essay in such a way that it answers all of the questions asked in the course. This will allow you to graduate with high marks, and you will also be able to find employment when applying for graduate programs and university admissions. It is a fact that college students are very anxious about their essays, and if you have a comparative analysis sample essay to give them, then you will increase your chances of getting a good grade on your essays.In addition to being able to write an essay that answers all of the questions asked in the course, you should also make sure that your essay is written in such a way that it has a good structure. The good format for a comparative analysis sample essay is that it should be able to answer the question 'how do you feel about the analysis presented by this essay?' The structure for a comparative analysis sample essay will consist of a thesis statement and the introduction.The thesis statement will serve as the introduction to the essay and should be written in such a way that it can answer all of the questions asked in the course. The introduction should be able to answer the questions like how do you feel about the theory presented by this essay, how do you feel about the methodology presented by this essay, how do you feel about the author's research techniques and so on.Your conclusion will be another part of your comparative analysis sample essay, and it should explain the implications of the conclusions of the essay. A good conclusion should be able to explain the relevance of the essay to the overall topic and to the purpose of the course. The best place to get information on how to write a comparative analysis sample essay is through your college's guidance counselor. You will be able to learn about all of the main components of a comparative analysis sample essay, and the different ways that you can structure your essay to answer all of the questions asked in the course.When writing a student essay, you must keep in mind that each essay that you write should be able to answer all of the questions asked in the course. By being able to answer all of the questions in the course, you will be able to be very successful in your college career.

American politics essays

American politics essays The United States is as we all know a very diverse nation. People from all walks of life come to America in hopes for a better life. The government is then looked to, to provide that better life for the American citizen. We have the right as free citizens to put who we want into office. Although the government is faced with many important decisions, we turn to them to make the right ones. The dimensions used in the political gauges are similar for all four of the quizzes. On the first quiz your answers could fit into a liberals, a moderates, or a conservatives point of view. The second quiz was much more in depth and at the end we were presented with a grid. The red dot told us where we stand. We could be social economic libertarian or social economic authoritarian. The third quiz was very short it only concerned common personal and economic issues. Your score was mapped out on a diamond with one of the five following results: libertarian, left-liberal, centrist, right conservative, or statist. The fourth quiz scored your answers much like the second one. Except this time you could be a fiscal/non-fiscal liberal/conservative. In general, I believe they measure not only a persons political stand, but could also reflect the persons personality as well. The things that we are taught in life often shape our political views. We can take this information along with our own thoughts and decide on our political preference. All four of the tests I took measured me almost the same. I am proud of my views and where I stand. I believe the second quiz provided the best non-biased measure, because it was the longest and the most in depth. There were 5 choices you could pick from, so you got the most accurate scored. Unfortunately, other quizzes lacked the selection of answers. I could tell when I was taking the test that I would have a pretty good idea of how they would define me. My ...

Lightweight Strong Materials In A Composite Surfboard

Lightweight Strong Materials In A Composite Surfboard The composite surfboard is a common place in the sport today. Ever since the introduction of fiberglass composites after World War II, the surfboard industry was truly one of the first to embrace composites. Prior to fiber reinforced composites, surfboards were manufactured out of wood and could weigh over 100 lbs. Today, a composite surfboard the same size (10 feet) might weigh less then 10 lbs. To shed this enormous amount of weight, surfboards took advantage of 3 key materials: Foam Core Polyurethane foam became the core material of choice for surfboards. It is lightweight, provides thickness, and provides buoyancy. The foam core of a composite surfboard is sandwiched between FRP skins and creates the stiffness and structure of the surfboard. Often, a stringer of wood is bonded in the center of the board to provide increased rigidity, much like an I-beam. The surfboard foam industry was dominated by the company Clark Foam up until 2005, at which time the owner decided to shut down with no prior warning. Today, the foam core for composite surfboards is primarily polyurethane foam. However, expanded polystyrene (EPS) is being used more often as the use of epoxy resins increases. Regardless of the foam used it almost always closed-cell, so that it does not absorb moisture. Resin Thermosetting resins have been key to the success of the composite surfboard. Even when boards were made of wood, resins and coatings were used to help prevent the boards soaking in water. As resin technology continues to improve, boards are able to become stronger and lighter weight. The most common resins used in composite surfboards are polyester resins. This is primarily because polyester resin is inexpensive. Additionally, resin manufacturers have perfected their polyester surfboard resins so that they are easy to work with and are crystal clear. It is important that the resins used are water-clear, because a surfboard is as much a work of art as it is a functional piece of equipment. As surfboards age, they turn yellow from the UV rays. Hence, UV resistance is an important factor to the resins used today. With the advancements in resin technology, it is no surprise composite surfboards are being manufactured with epoxy. Epoxy has no VOC emissions during the manufacturing process, and it has much higher strength, fatigue, and impact resistance properties. However, the only current downside to using epoxy is, these boards tend to turn yellow faster then polyester boards. Although, this may soon change with improved formulations. Fiberglass Fiberglass is the structural backbone to surfboards. The fiberglass reinforcement provides the structure and strength to the board. Most commonly, lightweight woven fiberglass cloth is used as the reinforcement. Usually, it is between 4 and 8 ounce fabric. (Ounces per square yard). Often more then one layer is used. Currently, the weaves used are evenly balanced with equal amounts of fiberglass running from nose to tail, and rail to rail. However, engineers are designing boards with different amounts of fiber running in different directions. This provides the strength and the rigidity where required, without adding much additional weight. Future Of The Composite Surfboard Surfers are known for being progressive, and with this comes experimentation with different shapes and materials. Boards today are embracing composite technology and new materials. The composite surfboards of the future are incorporating fibers such as Kevlar, carbon fiber, and Innegra. The various properties of the many composite reinforcements available can allow the surfer or engineer, to tweak the properties to help create the dream board. It also makes a surfboard extremely cool looking to have unique materials and construction. The various properties of the many composite reinforcements available can allow the surfer or engineer, to tweak the properties to help create the ultimate surfboard. It also makes a surfboard extremely cool looking to have unique materials and construction. Not only are the materials being used changing, but the method of manufacturing is evolving as well. CNC machines are commonly being used to precisely machine out the foam core. This creates boards that are almost perfectly symmetrical and exact. At first, the fear of mass production brought concerns of removing the soul from the sport. Meaning, the traditional method of hand shaping boards is being reduced to the job of a computer. However, the opposite seems to be true. Custom boards, which are truly works of art, seem to be as popular as ever. And with composites, creativity in methods and materials to laminate boards seems to give an endless opportunity to customize and personalize boards. The future of the composite surfboard is bright. In the 1950s the use of fiberglass was revolutionary. The new pioneers will continue to push the envelope and will embrace the next generation of composite materials and processing techniques.

The future of AIS Essay Example | Topics and Well Written Essays - 2500 words

The future of AIS - Essay Example AIS is an automatic system of tracking the ships on high seas. Shipping, has been known for many centuries as a formidable industry in itself and as a crucial means of propagating many other trades and industries. This mode of transport is one of the most dangerous as well. Therefore shipping industry calls for improved safety standards. Vessel traffic systems (VTS) uses AIS for identifying the vessels, exchanging data/ information and taking due precaution in case the vessel appears to be indulging in some suspicious activities. AIS is one of the most reliable standards adopted by the International Maritime Organization, a specialized agency under the aegis of United Nations. IMO is responsible for improving maritime safety and prevent pollution from ships. During the times of fog or at night on the high seas, AIS helps in easily identifying the ships from a safe distance and thus avoids any possible accident. Though ships are also equipped with radar for identifying and exchanging signals during navigation, but there happen to be some zones known as blind arcs or shadows, where AIS proves to be very helpful. Generally a vessel equipped with AIS will display the information relating to; Within the usual radio range of 15-20 nautical miles, the Automatic Identification System can process up-to 4000 reports per minute (Desvignes et al, 2002). With the help of such information AIS can help in collision avoidance, safe navigation, ships routing, automatic reporting, search and rescue operations, security screening, and traffic analysis. To make all these things possible AIS facilitates (Capt McCabe, 2007): Ship to ship identification and information exchange: This helps in taking evasive actions, collision avoidance etc/ Ship to shore identification and information exchange: This helps in taking adequate steps for anchoring the ship. The ship sizes, type of material on board the ship requiring delicate handling etc are all taken care of during such information exchange. Short safety related messages (SSRM)L During the times of emergency brief messages about the difficult state of the ship can be broadcast to nearby shores and ships. Binary messages (texts): Binary text message for particular recipients can also be transmitted. Aids to navigation functions: Existing AIS could provide navigational aid in the form of information about the nearby vessels, places etc. Meteorological and hydrological information: To certain extent the expert system can also forewarn the ship about the weather conditions ahead, so that adequate precaution can be taken. Differential GNSS services: It makes use of differential navigation techniques combined with GLONASS and GPS, collectively referred to as Global Navigation Satellite Service (GNSS). Search and rescue

Surgical care practitioners in the UK Essay Example | Topics and Well Written Essays - 1000 words

Surgical care practitioners in the UK - Essay Example ing Time Directives must also be accounted for in the emergent field of Surgical Care Practitioners and their placement in the realm of healthcare management. The objective is to understand how a theatre nurse may progress into the role of surgical care practitioner. (Troy, 398) Theatre nursing plays two major roles and those two roles are scrub nurse, and the circulator. The scrub nurse is the one who is sterile, and the circulator is the one who is not sterile. Surgical care practitioners would in fact be a new facet to surgical procedures in the operating theatre. The surgical care practitioner has the knowledge of infection control and maintains a safe environment, ensuring a sterile field for the patients and the rest of the medical staff. As a surgical care practitioner you have all the information of the anatomy and physiology of patients to ensure the best standards of care as a medical professional. The added benefits of surgical care practitioners would be in the fact that they are an asset in the operating theatre. They provide assistance to physicians and surgeons with the high level of training that is pursued prior to their licensure. The introduction of the surgical care practitioner would in fact augment the severe shortage of medical person nel in hospitals throughout the UK. There are problems in that junior physicians on occasion will consider surgical care practitioners to be a threat to their advancement or their position. Surgical care practitioners are involved in many different duties within their job description. Those duties include carrying out pre-operative assessment and physical examination as directed by the surgical team. Surgical care practitioners would also assist in patient preparation for surgery. This includes venepuncture, male and female catheterisation, patient positioning and preparation. (Troy, 321) There seems to be a common misconception that surgical care practitioners will share more patient contact than junior