week 3 - School of Accounting ACCT 1511 Accounting and...

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School of Accounting ACCT 1511 Accounting and Financial Management 1B Session 2, 2010 Week 3 Assets (2) More on Non-current Assets Current Assets Student Handout Contents: 1. Learning Objectives (LO) 2. Tutorial Questions 3. Lecture Materials Lecturer: Dr Leon Wong
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Learning Objectives At the end of this week, you should: LO1. Understand the mechanics of revaluing assets. LO2. Be introduced to intangible assets and its accounting treatment, and in particular research and development and goodwill. LO3. Revisit the accounting treatment of inventory. LO4. Understand the various accounting principles underlying the various treatments for these asset items. Required Readings ACCT1511 Course Outline Trotman & Gibbins (TG) – Chapter 8 (revision), 9.6-9.8, 9.10 Additional References http://www.aasb.com.au AASB 3 Business Combinations AASB 116 Property, Plant and Equipment AASB 138 Intangible Assets AASB 136 Impairment of Assets Tutorial Questions for Week 4 (Commencing 9 August) Preparation Questions Trotman and Gibbins: Problem 9.22 Problem 9.23 Homework Questions Trotman and Gibbins: Problem 9.27 Question (see next page for template): Comparison between cost and revaluation method. Track the recorded value of the Land over time, with journal entries.
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Homework Question: Comparison between cost and revaluation method Land Cost Method Revaluation Method Recorded Value Journal Entry Recorded Value Journal Entry Y 0 Buy for $100,000 Y 1 Market value: $150,000 Y 2 Market value :$120,000 Y 3 Market value: $75,000 Y 4 Market value: $100,000
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L1 ACCT1511 Assets (2) More on Non-current Week 3 1 Current: Inventory, Receivables Dr Leon Wong QUAD 3063 leon.wong@unsw.edu.au Non-Current Assets ± Long term investments may be – investments in securities (eg bonds, shares, long-term notes) – investments in tangible non-current assets (eg land not used in operations) – investments set aside in special funds (eg sinking fund 2 , pension fund) – investments in affiliated entities ± Property, plant and equipment consists of properties of a durable nature used in the regular operations of the firm ± They include land, building, machinery, furniture, tools and wasting resources (eg timber, minerals) ± Most assets (except) land are either depreciable or depletable Asset revaluations ± A revaluation may either be: – an increment – increasing the value at which the asset is recorded. – a decrement – decreasing the value at which
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This note was uploaded on 09/16/2011 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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week 3 - School of Accounting ACCT 1511 Accounting and...

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