Compute how should be treated in the financial statements

Assignment Help Financial Accounting

Reference no: EM132692666

An entity owns a property which was originally purchased for $300,000. The property has been revalued to $500,000 with the revaluation of $200,000 being recognized as other comprehensive income and recorded as revaluation reserve. The property has a current carrying value of $460,000 but the recoverable amount of the property has just been estimated at only $200,000.

Required:

Problem 1: What is the amount of impairment and how should this be treated in the financial statements?

Reference no: EM132692666

Questions Cloud

Explain firm-specific human capital using your own example : Explain firm-specific human capital using your own example. Identify TWO HR forecasting methods that are focused on human capital flows.

Show the impact of the impairment on january : Show the impact of the impairment on 1 January. A company runs a unit that suffers a massive drop in income due to the failure

Describe the pathophysiology of an acute asthma attack : Eight-year-old B.J. has had asthma for 2 years since he had acute bronchitis. He was tested for allergies and demonstrated marked responses to a number of anima

Create a organisational chart for a school : It should indicate that there are relationships between colleagues to seek assistance from when difficulties arise.

Compute how should be treated in the financial statements : An entity owns a property which was originally purchased for $300,000. What is the amount of impairment and how should be treated in the financial statements?

Explain typical three-neuron ascending pathway to the brain : Describe a typical three-neuron ascending pathway to the brain (e.g., involving the lateral spinothalamic tract) relaying somatosensory information.

Write assumptions about human nature and motivation : What assumptions about human nature and motivation are key to pay for performance plans? The response must be typed, double spaced.

Identify the recoverable amount of car and any impairment : A company owns a car that was involved in an accident at the year end. Identify the recoverable amount of the car and any impairment required.

User Account

All Pages