Valuation Of Non Current Assets

Question 1

What is an asset?
What is a non current asset?
What is depreciation an application of?
What will happen to a non current asset overtime? 
What is impairment?

Answer 1

A right or other access to future economic benefit as a result of a past transaction or event
A asset intended for use on a continuing basis in a business
The accruals basis
Wear out or be consumed overtime due to passage of time,use,obsolescence or depletion
When a nca is valued below it’s nbv

Question 2

Tangible NCA
What are these initially measured at?
When should revaluation be made for?
What is revaluation surplus credited to?
What is depreciation based on?
What is the only ground for not depreciating?

Answer 2

Cost
Class of assets
Revaluation reserve 
Revalued amount 
When something is immaterial

Question 3

Goodwill and other intangible nca
What are these of but do not have?
What is goodwill accounted for under? What are other intangibles accounted for under?

What is goodwill?

Answer 3

Benefit do not have physical substance
IFRS 3 business combinations
IAS38 intangible assets
Value of the business as a whole and aggregate of the fair value is the businesses separable assets minus liabilities

Question 4

Characteristics of goodwill
How can it not be sold?
What does it value do?
What can not be valued? 
What is there no reliable relationship of?
What is subjective?

Answer 4

Separately 
Fluctuates
Individual intangible factors contributing 
It’s value to it’s costs 
Assessment of its value

Question 5

Requirements of IFRS3
What goodwill can be included in accounts?
What can not be included in accounts?
What financial statement is it capitalised on?
What must be performed annually?

Answer 5

Purchased
Internally generated
Statement of financial positions
Annual impairment review

Question 6

Corporate social reporting/corporate social responsibility accounting

What is this recognising?(3)
Who does it report these activities to?(2)
What type of action is it taken by the business?
What does it create for the business and society?
What does the United Nations encourage? In which areas?(4)

Answer 6

Social, environmental and ethical responsibilities
Shareholders and other users of accounts
Voluntary account going above and beyond legal requirements
Shared value
Companies to embrace universal principles
Human rights, labour, the environment, anti corruption

Question 7

Theoretical approach to corporate social responsibility
What is maximising profits linked to?
What objectives maximise profits in the long run?
What should be aimed for?

Answer 7

Benefitting society
Social objectives
Satisfactory profit with attainment of a range of social goals

Question 8

What changes nature of corporate and social responsibility?(2)

Answer 8

Changes in society

Government action