Part A – Revaluations and decrepitude testing of non-ordinary property 15 Marks
1 Word limit: 250 words
One of the table of rulers of Simba Ltd has proposed that the aggregation inoculate the revaluation design for unroving property. Some of these property are severe to obtain and unmistakable items bear increased in appreciate in the ordinary continuance, however it is trying to apprehend what their spotless appreciate is. The ruler is arguing that spotless appreciate achieve mend the ‘look’ of the aggregation’s Declaration of Financial Position, and may explain the want for deterioration.
Discuss whether the table should inoculate the ruler’s offer. (5 marks)
Question 2 Word limit: 250 words
‘Impairment is barely applicable to property carried below the absorb design. For property carried below the revaluation design, such as our fix and buildings, increases and decreases in spotless appreciate prompt whether carrying amounts are adjusted up or down. We don’t vex testing fix and buildings for decrepitude’.
Critically evaluate the over declaration. (5 marks)
Question 3 Word limit: 1 500 words 32 Marks
Find the Annual Report Medibank for 2018 on the Australian Securities Exchange (www.as.com.au). Evaluate this Annual Report consonant after a while the requirements of AASB 13/IFRS 13 Fair appreciate Measurement, AASB 116/IAS 16 Property Plant and Equipment, and AASB 136/IAS 39 Impairment of Assets.
(a) Which property are carried at spotless appreciate? (2 marks)
(b) State where and what disclosures concerning the spotless appreciate size of property bear been made. (15 marks)
(c) Which property are tested for decrepitude? (2 marks)
(d) State where and what disclosures concerning the decrepitude of property bear been made. (13 marks)