AFW 3050 SEMESTER you, 2011
PROJECT 1 (WEIGHTING 15%)
Component 1 (weighting 10%, Not sure limit)
Auckland Ltd offers entered into a to lease contract a D9 Bulldozer to Albert Ltd. The rental agreement details are as follows:
Length of lease5 years
Commencement date1 This summer 2010
Gross annual lease payment, payable 40 June $8, 000
each year commencing 40 June 2011
Good value with the bulldozer at 1 This summer, 2010$34, 797
Estimated economic life of the bulldozer8 years
Estimated recurring value from the plant at the$2, 500
end of the economic existence
Residual value at the end from the lease term,
that 50% is usually guaranteed simply by Albert Ltd$7, 200
Interest rate implicit in the lease9%
The lease is definitely cancellable, but a penalty corresponding to 50% from the total rent payments is payable on cancellation. Albert Ltd does not plan to buy the bulldozer at the end in the lease term. Auckland Limited incurred $1, 000 to negotiate and execute the lease arrangement. Auckland Limited purchased the bulldozer pertaining to $34, 797 just before the inception of the lease. Necessary
1 . Condition how the two companies ought to classify the lease. Offer reasons for your answer. 2 . Prepare a routine of rental payments to get Albert Ltd.
3. Make a schedule of lease receipts for Auckland Ltd.
four. Prepare log entries to record the lease transaction for the year ended 30 June 2011 in the record of both equally companies. your five. Prepare a proper note for the financial claims of the two companies while at 30 June 2011. NOTE: Show ALL functions.
Source: Adapted from Trader, R., Leo, K., Loftus, J., Clark simon, K., and Wise, Versus. (2009). Australian Accounting Standards (2nd impotence. ). Ruben Wiley and Sons.
Part a couple of (weighting 5%, Word limit: 1000)
Vitally discuss the proposition that " IAS\AASB 117 does allow lenders to make ideal risk reviews of a businesses statement of financial positionвЂќ. References to be built to published magazines.
ASSIGNMENT two (WEIGHTING 15%, WORD LIMIT: 2000)
The IASB required a comprehensive report on...
References: to get made to published journals.
JOB 2 (WEIGHTING 15%, EXPRESSION LIMIT: 2000)
The IASB took a thorough review of financial instruments accounting and provides replaced( issued) a new economic instruments regular referred to as IFRS 9 Financial Instruments. IFRSAASB 9 was issued to change AASB 139 as it pertains to financial property and is suitable to gross annual reporting intervals beginning in or after you January 2013 although early adoption may occur.
Discuss critically the shortcomings and criticisms of IASAASB 139 which have given rise to IFRSAASB 9. Your conversation should be illustrated and educated by reference to two listed companies(ASX or other sources for the most recent years) who are using IASAASB 139. Your dialogue should include recommendations to how the future putting on IFRSAASB 9 will impact on the accounting for monetary instruments economic reports. The discussion should also consider the views of a range of researchers and accounting users and be appropriately referenced from authoritative options.