(i) Value in use
This is the present value of the estimated future cash flows expected to be derived from
the continuing/use of an asset and from its disposal at the end of its useful life.
(ii) Recoverable amount
This is the higher of an asset's value in use and the fair value less costs to sell or, net
realizable value.
marto answered the question on February 15, 2019 at 06:22
- In 1993, the Nairobi County Government constructed a public primary school at a cost of Sh.25 million. It was estimated that the school would be...(Solved)
In 1993, the Nairobi County Government constructed a public primary school at a cost of Sh.25 million. It was estimated that the school would be used for 40 years. By the end of 2013, the school population had declined from 1,500 students to 400 students as a result of a population shift caused by the bankruptcy of a major employer in the area. The management decided to close the two top floors of the three storey school building. The management has no expectation that enrollment will increase in future such that the upper storeys would be reopened. The current replacement cost of the school is estimated at Sh.13 million.Required:
Calculate the impairment loss to be recognized using the depreciated replacement cost approach.
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With regard to this standard, outline eight items that should be disclosed in respect of a GGS.
(c) IPSAS 20 (Related Party Disclosures) defines a related party as 'any party that has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if the related party entity and another entity are subject to common control'.
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ii) Outline four ways in which significant influence might be exercised.
Date posted: February 15, 2019. Answers (1)
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Impairment loss to be recognized for the software using the depreciated replacement cost approach.
ii) On 1 January 2004, the government built an office at a cost of Sh.50 million. The building was expected to provide service for 40 years. On 31 December 2013, after 10 years of use a fire caused severe structural damage and due to safety reasons, the office building was closed for repairs that cost Sh.35.5 million. These repairs were made to restore the office building to occupiable condition. The current cost' of a new office building is Sh,100 million.
Required:
Impairment loss to be recognized for the office building using the cost restoration approach
Date posted: February 15, 2019. Answers (1)
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Date posted: February 14, 2019. Answers (1)
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The following trial balance relates to Ndovu Limited as at 31 March 2013:
Additional information:
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6. The suspense account relates to a rights issue of shares that was made on 1 January 2013. The terms of the issue were one share for every four held at Sh.8 per share. The par value of each share is Sh.5. The issue was fully subscribed.
Required:
Prepare the following statements in a format suitable for publication:
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Date posted: February 14, 2019. Answers (1)
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Prepare for publication purposes:
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Date posted: February 14, 2019. Answers (1)
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Afya pensioners is a funded, non-contributory defined benefit scheme that was established by the management of Afya Food processors Limited in 1950. The directors have always expensed the company’s contribution to the scheme in the period of contribution and also credited to the income statement of any period, any refunds made from the scheme during the period in question.
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Required:
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ii) State and explain three reasons why there may be variations in the regular pension costs to the employer.
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Date posted: February 14, 2019. Answers (1)
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Additional information:
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3. Assume all transactions occurred at the year end.
Required:
i) Actuarial gains or losses on the present value of plan obligations.
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Date posted: February 14, 2019. Answers (1)
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Date posted: February 14, 2019. Answers (1)
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In the context of IAS 19 (Employee Benefits), evaluate:
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Date posted: February 14, 2019. Answers (1)