Assignment

Length: Question 1- 400-500 words
            Question 2- 400-500words

Question 1

Revaluations of Non-Current Assets and Accounting for Intangibles (Unit 5)

Referring to your selected entity:

a) Based on your knowledge of the entity, select any intangible asset (excluding goodwill) which it may recognise under IAS 38. Describe the nature of the asset and explain why the entity is permitted to recognise it. Note: the entity may not necessarily be recognising the asset at present.

b) Select any class of property, plant and equipment (PP&E) which that entity currently reports on its Balance Sheet. Discuss the benefits and challenges of revaluing that asset class.

Question 2

An Overview of Accounting for Liabilities and Leases (Unit 6)

Referring to your selected entity:

Select any item of PP&E within the class which you used for Question 1(b). Discuss whether you would advise the entity to sell it and immediately lease it back from the new owner under a finance lease. Use relevant accounting disclosures and financial ratios to support your answer.