None Collinsworth Limited, a U.K. company, prepares its financial statements according to International Financial Reporting Standards. Latein its 2024 fiscal year, a significant adverse change in business climate indicated to management that the assets of its appliancedivision may be impaired. The following data relate to the division's assets:Book valueUndiscounted sum of estimated future cash flowsPresent value of future cash flowsFair value less cost to sell (determined by appraisal)Required:(£ inmillions)£ 2452351701651. What amount of impairment loss, if any, should Collinsworth recognize?2 Assume that Collinsworth prepares its financial statements according to U.S. GAAP and that fair value less cost to sellapproximates fair value. What amount of impairment loss, if any, should Collinsworth recognize?Note: Enter your answers In millions (l.e., 10,000,000 should be entered as 10).1. Impairment loss2. Impairment lossmillionmillion

Impairment loss is the amount wherein the carrying amount of an asset exceeds its recoverable…

Answered: Collinsworth Limited, a U.K. company,…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 6,000,000 1,000,000 7,000,000 22,000,000 4,000,000 Accounts receivable Allowance for doubtful accounts Inventory Property, plant and equipment Accumulated depreciation Goodwill 3,000,000 Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? 2,000,000 1,000,000 A. 3,600,000 В. 6,000,000 С. 3,000,000 D. 1,800,000
Scenario: The 2020 comparative balance sheet and 2020 income statement of LJK Ltd, have just been prepared and presented to the owners by the company’s Accountant. Upon close examination, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the Accountant. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets: Cash & Cash Equivalent ? ? ? Accounts Receivable 87,550 ? 1,550 Inventories 93,900 98,540 ? Fixed Assets, Net 160,400 ? 49,900…
Scenario: The 2020 comparative balance sheet and 2020 income statement of JNC Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. "The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners". The owners have asked you to assist with the needed clarification having put forward the following financial information: Balance Sheet 2020 2019 Increase/Decrease Assets: Cash & Cash Equivalent ? ? ? Accounts Receivable 87550 ? 1550 Inventories 93900 98540 ?…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 2. Reconstruct the company’s comparative balance sheet…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. 1) Reconstruct the company’s comparative balance sheet for 2019/2020 using the information and compute and show the missing figures to include the appropriate sign as a…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. The owners have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information Maple…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Prepare a complete statement of cash flows for 2020 using the indirect method using the information.
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. The owners have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash and…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Increase/(Decrease) Assets Cash and…
The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners. Requirements: A. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? B. Reconstruct the company’s comparative…

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