RSM220H1 Lecture Notes - Lecture 12: Impaired Asset, Book Value
Document Summary
No continuing involvement -> defer regards timing and amount performance based achievement. Measurability -> measurable to recognize e. g. warranty expense, if not measurable, can"t match to revenue. Collectivity -> reasonable assurance to be collectable e. g. instalment sales customers -> creditability assessment. Net method journal entry presentation of expense other expense / operating expense impairment of ar. Ifrs record liability who is responsible for the amounts journal entries losses ( nancial institution aspect: nance charge -> interest revenue) note receivables interest element interest bearing non-intereste bearing e ective (market) rate vs. Pv of the note interest revenue stated (coupon) rate cash payment for interest annuity di erence between two rates premium/discount, or at par amortization. Aspe -> either e ective rate or straight line approach journal entries. > part of land or new stu ? inventory system perpetual periodic cost ow assumption. Cogs and ending inventory impairment applies item by item, or grouping. Bi + net purchases - cogs = ei.
