Financial Accounting Essay

2557 Words Jun 18th, 2013 11 Pages
REPORT ON BUSINESS CONSEQUENCES
OF NATURAL DISASTERS FOR THE
BOARD OF DIRECTORS OF MILLEY LTD







Bachelor of Professional Accounting
Macquarie University
Sydney, Australia
2011









Submitted to the Faculty of Busines and
Economics of Macquarie University in
partial fulfilment of the requirement for
ACCG 224
April, 2011



Word Count = 1484


Table of Contents

CONTENTS page

Executive Summary

Table of Contents

Introduction

Discussion
1.Research and report on the floors in Queensland 2 Discuss six items
2.1 Items of inventory destroyed
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In particular, the precise financial report presentation for the year ending 31 March 2011 will be useful to insurance assessors to complete assessment as soon as possible so that Milley Ltd can get compensation.

The research report analyses six items and concludes an ideal clarification:
• The amount of any write-down of inventories to net realisable value and all losses of inventories shall be recognised as an expense in the period the write-down or loss occurs. If some inventories are allocated to other asset accounts, these damaged inventories recognised as an expense during the useful life of that asset.
• A uncollected accounts receivable recognised as an impairment loss. And original effective interest rate is used to measure impairment before modification of terms.
• Unfulfilled contract to supply books means that the contract is onerous. Milley Ltd's present obligation under the contract shall be recognised and measured as a provision. Any impairment loss that has occurred on assets dedicated to the contract will be taken on by Milley Ltd.
• Initial costs of replaced PP&E can be classified as assets as they derive future economic benefits to Milley Ltd. Subsequent costs are regarded as profit or loss.
• Cleaning up costs in May 2011 does not meet the definition of provision as it is a future cost and will be recoginsed as expenses in income…

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