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Economics, Accounting & Business: Post your doubts here!

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IAS 36: Impairment of Assets
oIt applies to all assets except inventories.
oAn impairment loss of an asset is recognized when the carrying amount of an asset exceeds its recoverable amount.
oAn impairment loss is recognized in profit or loss account for assets carried at cost and treated as a revaluation decrease for assets carried at revalued amounts.
oRecoverable amount is the higher of an asset’s fair value less costs to sell and its value in use.
oValue in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
so the recoverable amount is 4 ans the carrying amount is 5 , so 5-4 = 1 loss on impairment?

Also in Q17 why did they take only retained earnings and general reserve?
 
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so the recoverable amount is 4 ans the carrying amount is 5 , so 5-4 = 1 loss on impairment?

Also in Q17 why did they take only retained earnings and general reserve?

Because others are capital reserves I think and are restricted....
 
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btw is that the old standard? Bcos according to IAS 7 we only include deposits available at 24hours notice as cash :S MnMz
 
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btw is that the old standard? Bcos according to IAS 7 we only include deposits available at 24hours notice as cash :S MnMz

Cash equivalents include investments that are short term (less than three months from date of acquisition), readily convertible to a known amount of cash and subjected to an insignificant risk of changes in value
Thats the new one
the old one is the 24 hrs thing...
 
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Patanae yar im confused too :s I mean some say that preference shares are a part of equity, except the reedamable ones :/
yeah well that makes sense cuz we'll take redeemable as Liabilties, but these questions did not mention if they were redeemable or irredeemable :unsure:
 
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can anyone anyone solve specimen paper 1O , q10 , 17 and 30

30 - IRR = 9 + (4 * 16142/(16142 + 4931) )
17 - well the answer is A....bt there is a big fuss abt it...so yea..
11- answer C.....117200 - share premium - bonus share issue
 
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Cash equivalents include investments that are short term (less than three months from date of acquisition), readily convertible to a known amount of cash and subjected to an insignificant risk of changes in value
Thats the new one
the old one is the 24 hrs thing...

wait, 3 months or six? :/
 
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