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20 views

hihiih

Uploaded by

huynhkhoadiem.10082004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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On Jan,01,10. NPA Ltd acquired a building with $30.000.

NPA Depreciation the building on


a straight - line basis, with an estimated useful life of 5 year and residual value of $3000. On
Dec 31, 12 the manager reconsider the residual value and change it into $50005 Required:
Prepare any necessary entries in NPA'S Financial statement Dec 31,13
Before reconsidering :
Depreciation amout = (30,000-3,000)/5 = $5,400
Dr Depreciation expense : $5,400
Cr Accumulated depreciation : $5,400
After reconsidering :
Depreciation amount = (30,000-5,000)/5 = $5,000
Dr Depreciation expense : $5,000
Cr Accumulated depreciation : $5,000
Apple Limited reviews its depreciation policy annually. At the most recent review for the
year ended 31 December 2012, the directors decided that the remaining useful life of the
machine at 1 January 2012 was three years. Additional information in relation to machinery
is as follows:
Machinery - cost at the date of acquisition 1-1-09 €3,600,000
Estimated useful life at 1-1-09 10 years
Estimated residual value as at 1-1-09 Nil
Requirement
Explain how to account for this change in the useful economic life of machinery in the
financial statements of Apple Limited for the vear ended 31 December 2012
Cost = $3,600,000
Depreciation year 09 = (3,600,000 – 0)/10 = $360,000
Depreciation year 10 = (3,600,000 – 0)/10 = $360,000
Depreciation year 11 = (3,600,000 – 0)/10 = $360,000
Carrying amount at 31 December 2011 = 3,600,000 – 360,000*3 = $2,520,000
Revised remaining useful life of the machine at 1 January 2012 was three years
After revising
Depreciation for the year = (2,520,000-0)/3 = $840,000
Dr Depreciation expense :$840,000
Cr Accumulated depreciation : $840,000
An asset with a cost of €100,000 was originally estimated to have a productive life of 10
years.The straight-line method is used, and there was no residual value anticipated. After 2
years, management revises its estimate of useful life to a total of 6 years.
Required: Compute and Record the entries with this case
Cost = $100,000
Depreciation year 1 = (100,000-0)/10 = $10,000
Depreciation year 2 = (100,000-0)/10 = $10,000
Carrying amount at 31 December year 2 = 100,000 – 10,000*2 = $80,000
Revised of usefull life to a total of 6 year
After revising
Depreciation for the year = 80,000/4 = $20,000
Dr Depreciation expense : $20,000
Cr Accumulated depreciation : $20,000
1. On Dec 31, 19, NPA Ltd acquired a building with $40,000. The company depreciated the
building on a straight-line basis, with an estimated useful life of 10 years and a residual value
of $4,000. On Dec 31, 20, the manager reconsiders the residual value and changes it to $3000.
2. On 1 July 2020 Company ABC acquired a building with $400,000. The company
depreciated the building on a straight-line basis, wi an estimated useful life of 10 years and
residual value of $4,000. On 1 Jan 2021, Company ABC's directors reviewed the depreciation
rates for similar buildings used in its industry and decided that the buildings should be
depreciated 10 years more, with same residual value. Company ABC's reporting period ends
on Dec 31.
Required: Provide a solution to solve these changes in accounting. (Show the calculation of
this change, prepare necessary entries)
1. Before reconsidering
Depreciation amount = (40,000-4,000)/10 = 3,600
Dr Depreciation expense 3.600
Cr Accumulate Depreciation 3.600
After reconsidering
Depreciation amount = (40,000-3,000)/10 = 3,700
Dr Depreciation expense 3.700
Cr Accumulate Depreciation 3.700
2. Before reconsidering
Depreciation amount = (400,000-4,000)/10 = 39,600
Dr Depreciation expense 39.600
Cr Accumulate Depreciation 39.600
After reconsidering
Because company abc directors reviewed the depreciation rates for => Estimated useful life: 20
years
Residual value: 4,000
Depreciation amount = (400,000-4,000)/20 = 19,800
Dr Depreciation expense 19.800
Cr Accumulate Depreciation 19.800
THE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME OF NPA Ltd
Revenue: $2,200,000
Cost of sales: $1,200,000
Gross profit: $1,000,000 (2,200,000 - 1,200,000)
Other operating income: $40,000 (28, 000 + 12,000)
Selling and distribution costs: ($45,000)
Administrative expenses: ($30,000)
Profit from operations: $965,000 (1tr+40,000-45,000-30,000)
Finance expenses: ($18,000)
Profit before tax: $947,000
Income tax expense: (189,400) (947,000 x 20%)
Profit of the year: $757,600
Other comeprehensive income:
Gain available-for-sale: 30,000
Total comprehensive income for year: 787,600 (757,600 + 30,000)
- Nếu như đề có Owner of the parent invest 80% in the company thì thêm phần
* Profit/ (loss) attributable to:
- Owners of the parent (profit for the year x 80%)
- Non-controlling interests (profit for the year x 20%)
Total comprehensive income/ (loss) attributable to
- Owner of the parent (Total comprehensive income for year x 80%)
- Non-controlling interests ( Total comprehensive income for year x 20%)

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