PLEASE DO THE ASSESSMENT 3 ONLY.... ASSESSMENT 3 ONLY..ASSESSMENT 3 ONLY

Executive Summary
The standards made by AASB for
inging the uniformity and comparability across different organizations and nations. AASB 136 deals with impairment of the assets. The impairment test id used to compare book values with higher values from recoverable or cash inflows of cash generating assets at the end of financial year or when there is evidence about change in value of asset from internal or external sources. The development cost of intangible assets as per AASB 138 can be capitalized if certain conditions are fulfilled. Also there is difference in calculation for external or internal intangible assets. AASB provides option of cost or revaluation model for accounting of property, plant and equipments however revaluation model is more realistic.
Table of Contents
    Serial No.
    Topic
    Page No.
    1.
    Introduction
    1
    2.
    Requirements of AASB 136 related to impairment of assets
    1
    3.
    Reason for usage of cash generating units (CGU) rather than single asset
    1
    4.
    Factors Considered and Determination of CGU
    1
    5.
    Conditions for the capitalization of development cost
    1-2
    6.
    Way of accounting the proposal under AASB 138 and its impact on financial statement
    2
    7.
    AASB 116 accounting treatment of revaluation to property, plant and equipment assets
    2
    8.
    Finding in context of proposal of Seagull Ltd
    2
    9.
    Recommendation for the proposal
    3
    10.
    Conclusion
    3
    11.
    References
    4
Introduction
There was divergence in the usage of various accounting principles before Australian Accounting Standards came into existence. These standards are issued by Australian Accounting Standard Board. These help in
inging uniformity in the application and disclosures of various accounting principles and make the financial statement comparable across various organizations and economies. There is much diversified role of these standards in
inging transparency and reliability in the financial reporting practices of various corporate houses. These standards helps in covering up those loopholes in accounting system which can be used by these corporate houses in window dressing the financial information and presentation of same in a way to manipulate investors, creditors and other stakeholders.
Question No. 1:
Requirements of AASB 136 related to impairment of assets
This standard prescribes for testing of impairment on assets. This test reveals the impairment loss which arises when the value of asset recorded in the financial statement is more than the value which can be recovered in the market. This standard ensures that the assets to be accounted...