What do you think accounting standard setters

Assignment Help Accounting Basics

Reference no: EM132934314

Question 1. What attributes must something possess in order to be defined as an asset? Why? What are the asset recognition rules? (Applying the principles in the 2018 Conceptual Framework)

Question 2. A company has a copper mine in South Africa. It purchased the mining rights ten years ago for $20 million and has been operating the mine for the past ten years. It is estimated that there are about 8 million tons of copper in the mine. Because of a fall in world copper prices, the company has closed the mine indefinitely. At current world copper prices, the mine is uneconomic because the costs involved in extracting the copper are greater than the selling price. As the mine is in a remote and unpopulated areas there is no alternate use and it would not be able to be sold. If copper prices rise by more than 25 per cent, the company has stated that the mine would be reopened. In the foreseeable future (next 10 years or so) it is estimated there is a 20% probability that copper prices will rise sufficiently for extraction to be profitable.

Explain whether this mine would meet the definition and recognition criteria of an asset, applying the principles in the Proposed Framework (2018 Conceptual Framework).

Question 3. What are the distinctive features of an intangible asset?

Question 4. Explain how we might measure intangibles under AASB 138/IAS 38 Intangible Assets.

Question 5. What do you think accounting standard setters should do in relation to intangible assets? Justify your position.

Question 6. How is the presence or absence of a market vital to the justifications advanced for the treatment of intangible? Evaluate these Question justifications.

Question 7. What are the principal components of goodwill?

Question 8. What are the major problems with the old lease standard (IAS 17) and what are the main changes in the new lease standard (IFRS 16)?

Reference no: EM132934314

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