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The document contains financial information for three companies: 1) Flightline - States the non-current assets, depreciation expense, and repairs and maintenance expenses for an old engine and cabin fittings. 2) Abena - Shows a $25,000 research expense and $80,000 development cost that meets the criteria to be capitalized under IAS 38. 3) Aphrodite - Presents the carrying amount and depreciation of a machinery asset over multiple years, along with an impairment review that results in a $17,750 impairment loss.

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Isbah I
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101 views5 pages

Assignment Solution

The document contains financial information for three companies: 1) Flightline - States the non-current assets, depreciation expense, and repairs and maintenance expenses for an old engine and cabin fittings. 2) Abena - Shows a $25,000 research expense and $80,000 development cost that meets the criteria to be capitalized under IAS 38. 3) Aphrodite - Presents the carrying amount and depreciation of a machinery asset over multiple years, along with an impairment review that results in a $17,750 impairment loss.

Uploaded by

Isbah I
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Q1.

Flightline Workings
Extract of Statemnet of Financial Position Old Engine
As at 31 March 20x9 Cost 9,000,000
Depreciation for the year 300,000
Non Current Assets $ Acc. Depreciation 1,800,000
Engine 10,620,000 600,000
Cabin Fittings 8,000,000 Carrying Amount 6,900,000

Cabin Fittings

Cost 25,000,000
Flightline Acc. Dep 17,500,000
Extract of Statemnt of Profit or Loss 7,500,000
for the year ended 31st March 20x9 Upgrade 4,500,000
12,000,000
Depreciation Depreciati 4,000,000
-Engine 480,000 8,000,000
-Cabin fittings 6,500,000

Repair - Wing 3,000,000


Repaint of Exterior 2,000,000

Q2. Abena
$ $
Research Expense 25,000
Bank 25,000

*Development Cost (I 80,000


Bank 80,000

* assuming that this cost fulfill the criteria of IAS 38

Q3. Aphrodite
31-Dec-x3 31-Dec-x4 31-Dec-x5
1-Jul-x3 1-Jul-x4 Oct 20x6

$
Cost at 1 Jul 20x3 80,000
Depreciation for 6 m 4,000
31-Dec-x3 76,000
1 Jan 20x4-30 Jun-X4 4,000
72,000
Revaluation Gain 9,000
(81-72) 81,000 After revaluation
Dep for 6 months 4,500
till 31-Dec -20x4
76,500
Depreciation for 20x5 9,000
31-Dec-20x5 67,500
Dep till 30 Sep 20x6 6,750
C.A 1 oct 20x6 60,750

Impaiment Review
VIU $38685
FV Less cost to sell 43000
RA is Higher VIU or FV 43000

Impairment Loss 17,750

Remaining useful life 7 years

Depreciation 1,536

C.A as at 31-Dec.20x6 41,464

Extract of SFP
as at 31st Dec 20x7

Non current assets 31-12-20x5 31-12-20x6


$ $
Machinery 67,500 41,464
New Engine
10,800,000
180,000 480,000

10,620,000

31-Dec-20x6

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