What is the appropriate action for buster limited

Assignment Help Accounting Basics
Reference no: EM132621747

Question - Buster Ltd had purchased goodwill to the value of $100 000 recorded in its consolidated financial statements. The goodwill has been determined to have an indefinite useful life. However, one year later Buster Ltd's cash-generating units has been determined to have incurred an impairment loss of $13 000. What is the appropriate action for Buster limited to comply with AASB 138 Intangible Assets and AASB 136 Impairment of Assets?

Write-off goodwill in its entirety as goodwill no longer exists.

Recognise impairment loss of $13 000 and credit goodwill.

Amortise goodwill for 20 years using straight-line method.

Recognise impairment loss of $13 000 and credit equity.

Reference no: EM132621747

Questions Cloud

One effective way to communicate bad or negative messages : One effective way to communicate bad or negative messages is to use the sandwich method where you first compliment,
Determine the present value of the lease payments : On 1 July 2020, Amy Ltd leased a processing plant to Kent Ltd. Determine the present value of the lease payments from the perspective of Kent Ltd
In the land of free trade-do you believe that is ethical : In the land of free trade, Do you believe that is ethical? Do you believe that some industries are unfairly targeted ?
What is the benefit of understanding Organizational Behavior : What is the benefit of understanding Organizational Behavior to a Manager? What factors would you advise the management to take into account when doing this
What is the appropriate action for buster limited : What is the appropriate action for Buster limited to comply with AASB 138 Intangible Assets and AASB 136 Impairment of Assets
Government to agree to grant terrorist immunity : In a hostage crisis, is it ethical for a government to agree to grant a terrorist immunity if they release the hostages,
What is the amount jack needs to pay linda : Linda lent Jack $8500 at an annual interest rate of 8% compounded monthly, if the effective annual rate is 8.30%, what is the amount Jack needs to pay Linda
What is the effect on the current ratio of inventory : Question - What is the effect on the current ratio of 1) inventory purchased for cash, and 2) equipment purchased for cash
Discuss how to access team productivity : Discuss how to access team productivity. What conditions need to be in place for teams to excel and why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd