ACCT3102 Study Guide - Midterm Guide: Increment And Decrement Operators, Impaired Asset, Book Value
Document Summary
Fair value: the price that would be received to sell an asset. Sufficient regularity: if the fair value of an asset changes frequently, it should be revalued at shorter intervals than an asset whose value is stable. Cr asset e. g. ,000 increment to be recognized; last year ,000 revaluation expense was recorded. 5,000: disposal of assets (aasb 116): gain or loss from derecognition of an item of ppe is to be calculated as the difference between, net disposal proceeds, the asset(cid:859)s (cid:272)arr(cid:455)i(cid:374)g a(cid:373)ou(cid:374)t (a) beginning of the year: 10,667 (b) revaluation downward end of year. Cost model (cid:894)para. (cid:1007)(cid:1004), aasb (cid:1005)(cid:1005)6(cid:895) (cid:858)after re(cid:272)og(cid:374)itio(cid:374) as a(cid:374) asset, a(cid:374) ite(cid:373) of ppe shall (cid:271)e (cid:272)arried at its cost less any accumulated depreciation and any accumulated impairment losses. (cid:859) Impairment of assets: aasb (cid:1005)(cid:1007)6: (cid:858)i(cid:373)pair(cid:373)e(cid:374)t of assets(cid:859) applies to all assets regardless of tangibility or the measurement method, asset is impaired when carrying amount > recoverable amount.
