IFRS

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Word limit: 1,500 words Turnitin: less than 25%. I hope the expert will answer this assignment beautifully. Document Preview: SEGI BAC Adv. Financial Accounting & Reporting 2 Coursework Questions. You are the financial controller of DD which currently prepares financial statements in accordance with local GAAP. Your finance director has been in discussions with your corporate reporting advisors about whether to move to reporting under IFRS and has forwarded to you the following note received from them: “There are a number of differences between the local GAAP and the IFRS recognition and measurement rules. Using information on our files, we have conducted a preliminary review of how your most recent financial statements might change if you had reported under IFRS. Below we show our estimates of the effect on equity at the end of the last year, together with brief notes on the different rules. $’000 $’000 Equity as reported under local GAAP 6,688 Adjustments: Amortisation of goodwill acquired in business combination 250 Valuation of property measured under revaluation model 1,200 Depreciation thereof (350) 850 Development expenditure 180 Amortisation thereof (40) 140 Equity as reported under IFRS 7,928 Recognition and Local GAAP IFRS measurement rules Goodwill You, like most local companies, Goodwill amortisation is Amortise goodwill over 20 years prohibited Property – revaluation Existing use value, that is taking Fair value, that is the open model –basis of into account what you use it for market value taking into valuation account all possible uses. Development You, like most local companies, Recognition as an asset is Expenditure choose to write off development compulsory when certain Expenditure as incurred conditions are met. Your finance director is aware that those making economic decisions use financial information for various purposes, including for the assessment of financial performance. He is pleased that the introduction of IFRS... Attachments: AFAR2-Coursew....docx

 

Solution ID:565833 | This paper was updated on 26-Nov-2015

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