ADMS 3585 Lecture Notes - Lecture 3: Revenue Recognition, Accounts Payable, Cash Flow
20 Jun 2014
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Adms 3585 summer 2014 solutions to review questions week 3. Exercise 4-4 (20-25 minutes) (a) the income statement and related footnote are as follows: Loss from impairment of assets of discontinued operations, less applicable income tax recovery of ,000. On october 5, 2014, the board of directors decided to dispose of the blue division by auction. (note that earnings per share calculations are not required under aspe) (b) The office equipment would be shown separately on the balance sheet as part of noncurrent assets as noncurrent assets held for sale/related to discontinued operations . The assets would be valued at the lower of their carrying amount and fair value less costs to sell. In this case, this means the office equipment would be remeasured to ,000, which is its estimated selling price, net of costs to sell. Under ifrs, the office equipment should be presented as held for sale, and classified as current assets on the balance sheet.
