Accounting free essay sample

The income sources have specific ledger accounts which they are recorded in. Some of these differ to those of a business. Membership fees and entrance fees are recorded in the Membership Fees and Entrance Fees accounts in the general ledger respectively. These accounts are found in the Nominal Accounts section and are considered income accounts. Unlike a business, the buying and selling of goods is recorded in accounts specifically for those goods (There is no Cost of Sales or Trading Stock account). For instance, items sold for cash at the tuckshop will be recorded in the Sales and the Refreshments accounts. Jerseys bought on credit will be recorded in the Jersey and Creditors’ Control accounts. The Club therefore has a Refreshments account (Tuckshop goods), a Jersey account and a Sock account (both for Club Shop goods). These are Income and Expense accounts. Instead of income being recorded to the credit side of Profit and Loss (as would be done in a business), it is instead recorded to the credit side of Income and Expenditure. Since the recoverability test is needed under IFRSs, Ida needs to figure out the amount of impairment (if any) which should record on the commercial building and report to its parent as of December 31, 2012. An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. The carrying amount of Idas building is $4,500,000, and in order to calculate the impairment loss, its recoverable amount is required. 4. A. After the impairment testing, goodwill associated with the Spanish operations impairs under GAAP as of 12/31/2010. The impairment loss is $200,000. Under U. S. GAAP, goodwill impairment test is taken annually, or when there is impairment indicator. B. After the impairment testing, goodwill associated with the Spanish operations impairs under IFRSs as of 12/31/2012. The impairment loss is $400,000. The new carrying value of the assets is $3. 1 million. The new carrying value of the CGU is $1. 8 million. Goodwill acquired in a business combination shall be allocated to each of the acquirer’s cash-generating units, or groups of cash generating units.