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29 Cards in this Set
- Front
- Back
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Accounts used in disoulution of a partnership. |
Partner capital accounts Asset named accounts Realisation account Liability accounts |
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Process of entries in disolution of partnership at a loss with no absorbtion in capital accounts. |
Recognise sale of assets Recognise transfer of cash Recognise distribution of loss Recognise the covering of loss Pay accounts payable (or other liability?) |
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What method to use when dustributing share of profit or loss in a partnership? |
If stated, follow stated method. If not, distributions are equal amoung partners in accordence with iasb. |
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How do you calculate using capital share distribution? |
Partner x/(partner x + y) = ratio For partner x |
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Distribution of profits using set ratio 3:4:2 |
Total the value of ratio 9. Net Profits/ratio × by partner share. |
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Always use capital proportions method when calculating coverage of loss of a bankrupt partner. True, False? |
True |
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Accounts used in accounting for distribution of shares? |
Bank trust Application Bank Equity receivable Share capital Admin expenses Forfieted shares |
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Process of accounting for share distributions? |
Recognise application Distributed shares, prorata Adjust equity rec and application Recognise transfer of monies Pay asociated expenses (admin) Receive allotment Receive first call Open forfieted share acc Re sell shares and take loss from forfieted shares Recognise cost of reissue, take from forfieted share Pay back monies to forfieted share holder. |
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Process in accounting for a revaluation? |
Eliminate depreciation Revalue asset Account for subsequent depreciation |
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What are acceptable measurements of PPE in accordance with NZ IAS? |
Cost or fair value |
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What happens when the carrying amount of an asset exceeds the recoverable amount? |
The asset must be written down to the recoverable amount NZ IAS Impairment of assets |
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Define Historical cost system |
Assets valued at actual prices paid rather than market valuations or present value. |
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Define Modified historical cost system |
Allows the revaluation of assets from cost to fair value. Upward valueations are permitted in NZ. |
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Define impairment loss |
If the value of a non current asset is decreased because carrying amount is greater than recoverable amount, the decrease is recognised as an impairment loss. |
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Which to models to use when measuring non current asset value? |
Cost model Revaluation model (which uses fair value as a basis for measurement) |
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Define fair value |
The amount at which knowledgeable and willing parties could exchange an item in an arms lenght transaction |
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How to measure fair value? |
Market value, or (possibly net selling price?) |
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How often are revaluations required when using revaluation model? |
Whenever the difference in value could be considered material, possible every period, or every 5 years. |
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Revaluation increment? |
Represents the difference between the carrying amount and fair value of an asset when it is valued upwards |
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How, and where are Revaluation increments recognised? |
In other comprehensive income, and accumulated in equity under revaluation surplus. Recognised as profit or loss if it reverses a previous revaluation recognised as profit or loss |
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Define recoverable amount |
The higer of value in use or fair value less costs to sell |
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The account used with a revaluation decrement? |
Loss on revaluation |
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Revaluation decrement can be debited to decrease a previous revaluation surplus if a valuation increment has occured. True, fale? |
True |
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Define Value in use |
Present value of future cash flows from asset |
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Accounts in revaluations and impairment process? |
Revaluation surplus Loss on revaluation Asset name Depreciation Accumulated deprecition Imparment loss |
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Accounts in process of accounting for debentures? |
If public include: Bank trust Application debentures Othewise: Bank Debentures Interest expense |
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Process of finding a debenture issue price? |
*Debenture value × the number in present value of $1 table) + (debenture cupon rate per period × number in present value of annuity table) when using tables use market demanded rate of interest and 6monthly periods. |
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Process of journal entries for debentures? |
Issue debentures. Pay coupon interest, record market interest, adjust the difference to the debenture balance. Repeat interest on balance of debenture, but continue to pay full cupon rate. |
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In a debenture value table there are? |
Period, opening balance, interest paied, actual interest, amortisation, closing balance. |
