Account for PPE (change of accounting policy)

Exp Limited (Exp) is the parent entity of the Exp group (the Group). All subsidiaries are wholly owned. The Group uses Australian dollar as its presentation currency. 2. During the year ended 30 June 20Y0, the Group changed its accounting policy in relation to the valuation of land. Exp moved from the cost model to […]

Dividend declared and paid

Exp Limited (Exp) is the parent entity of the Exp group (the Group). All subsidiaries are wholly owned. The Group uses Australian dollar as its presentation currency. 1.An interim dividend of $2,500,000 was declared and paid by Exp in November 20X9. Required: Prepare the journal in November 20×9  

OCI items

Select the items that need to be disclosed in OCI (Other comprehensive Income)

Amortised cost

On 1 July 20X9, Exp limited (Exp) invested in a bond as follows: Fair value paid for the bond: $680,000 Face value: $700,000 Maturity date: 30 June 20Y1 No Annual repayment of principal Interest rate (coupon rate): (interest is payable annually in arrears each 30 June). 5% Effective interest rate (EIM): 5.5312% Due to a […]

PPE revaluation decrement 2

On 31 March 2020, an item of PPE is revalued. Its carrying amount after the elimination of depreciation is $80,000. A revaluation Increment of $10,000 had previously been recognised in relation to this asset. The Fair Value of the asset is $40,000 Q :Please prepare the journal that needs to be recorded on 31 March […]

PPE revaluation decrement 1

On 31 March 2020, an item of PPE is revalued. Its carrying amount after the elimination of depreciation is $100,000. A revaluation Increment of $40,000 had previously been recognised in relation to this asset. The Fair Value of the asset is $70,000 Q :Please prepare the journal that needs to be recorded on 31 March […]

PPE revaluation increment 2

On 31 March 2020, an item of PPE is revalued. Its carrying amount after the elimination of depreciation is $60,000. A revaluation decrement of $40,000 had previously been recognised in relation to this asset and it had been asserted that realization of the resulting DTA was probable. The Fair Value of the asset is $140,000 […]

PPE revaluation increment 1 

On 31 March 2020, an item of PPE is revalued. Its carrying amount after the elimination of depreciation is $80,000. A revaluation decrement of $50,000 had previously been recognised in relation to this asset and it had been asserted that realization of the resulting DTA was probable. The Fair Value of the asset is $120,000 […]

Depreciation calculation

Fordside Limited (Ford) has PPE with a cost of $7,000,000 at 30 June 2019. During the year end 2019, the following transactions occurred: On 1 July 2019, Building A, which had a cost of $5,000,000 and a carrying value of $2,500,000, was revalued to $4,000,000. Building A has a remaining useful life of 10 years […]

Foreign currency transactions

Organic Milk limited (Organic) sells milk and operates from central Auckland, New Zealand. Organic reports in accordance with the IFRS. Organic Milk has just delivered milk to a client based in Sydney, Western Australia. The contract price was AUD $6,000,000, with payment due within 30 days of delivery. The milk was delivered and accepted by […]