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Intermediate Financial Accounting I Group assignment

This document outlines a group assignment for the Intermediate Financial Accounting I course at Jimma University, detailing guidelines for group work and specific questions related to international accounting standards, FASB/IASB convergence, and accounting for inventories and equipment. The assignment emphasizes the importance of originality, proper documentation, and submission by the final exam date. Students are required to demonstrate their understanding through various accounting scenarios and journal entries.

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Tuge Ali
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8 views

Intermediate Financial Accounting I Group assignment

This document outlines a group assignment for the Intermediate Financial Accounting I course at Jimma University, detailing guidelines for group work and specific questions related to international accounting standards, FASB/IASB convergence, and accounting for inventories and equipment. The assignment emphasizes the importance of originality, proper documentation, and submission by the final exam date. Students are required to demonstrate their understanding through various accounting scenarios and journal entries.

Uploaded by

Tuge Ali
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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JIMMA UNIVERSITY

Department of Accounting and Finance


Course Intermediate Financial Accounting I (AcFn3021)
Instructor Getachew Ali

This is a group assignment, which helps you to understand the subject very well. You are
requested to address according to the guideline listed below.
Guidelines/Instruction:
Number of Group Member has to be not more than five
Copying from others invalidates your work,
Show all the necessary steps for workout questions,
Submit at the end of this course final examination date.
Write down full name of member with their identity card number
Weight 20%
1. Who are the two key international players in the development of international accounting
standards? Explain their role.
2. Briefly describe FASB/IASB convergence process and the principles that guide their
convergence efforts.
3. What is the benefit of a single set of high-quality accounting standards?
4. Do the IASB and FASB conceptual frameworks differ in terms of the role of financial
reporting? Explain.
5. What are some of the differences in elements in the IASB and FASB conceptual
frameworks?
6. What are some of the challenges to the FASB and IASB in developing a converged
conceptual framework?
7. Briefly describe some of the similarities and differences between GAAP and IFRS with
respect to the accounting for inventories.
8. Briefly describe some of the similarities and differences between GAAP and IFRS with
respect to statement of financial position (balance sheet) reporting
9. Tanaka Company has land that cost $15,000,000. Its fair value on December 31, 2012, is
$20,000,000. Tanaka chooses the revaluation model to report its land. Explain how the land
and its related valuation should be reported. Presented below is information related to
equipment owned by Pujols Company at December 31, 2012.
Cost (residual value $0) $9,000,000
Accumulated depreciation to date 1,000,000
Value-in-use 5,500,000
Fair value less cost of disposal 4,400,000
Assume that Pujols will continue to use this asset in the future. As of December 31, 2012, the
equipment has a remaining useful life of 8 years. Pujols uses straight-line depreciation.
Instructions
a) Prepare the journal entry (if any) to record the impairment of the asset at December 31,
2012.
b) Prepare the journal entry to record depreciation expense for 2013.
c) The recoverable amount of the equipment at December 31, 2013, is $6,050,000. Prepare
the journal entry (if any) necessary to record this increase.
10. Assume the same information as in Q-9, except that Pujols intends to dispose of the
equipment in the coming year.
Instructions
a) Prepare the journal entry (if any) to record the impairment of the asset at December 31,
2012.
b) Prepare the journal entry (if any) to record depreciation expense for 2013.
c) The asset was not sold by December 31, 2013. The fair value of the equipment on that
date is $5,100,000. Prepare the journal entry (if any) necessary to record this increase. It
is expected that the cost of disposal is $20,000.

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