MAA363 Study Guide - Final Guide: Financial Statement, Intangible Asset, Book Value
Document Summary
Any entity regulated by the corporations act is required to prepare an annual report including all: Managed investment schemes: decision useful information, faithful representation of economic reality, compliant with standards. The use of accounting techniques to present a positive looking financial report e. g. window dressing, creative accounting. If high quality, it can increase company value: aggressive = choices increase reported financial position, conservative = choices decrease current reported financial position but may. At acquisition date/initial recognition = recognised at cost. Subsequent to initial recognition = cost model or revaluation model. Cost model = assets are carried at cost, less any accumulated depreciation or impairment losses. Revaluation model = fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses. Recognition of an asset: probable that future economic benefits associated with the asset will flow to the. Indicators of impairment entity: the cost of the asset can be measured reliably.
