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Ethics Case 11-11 - Asset mischief - LO8 Requirement 1 ruddy whole tone Food partnership acquired equipment for 42 million in 2007 for utilisation in the manufacture of a new line of bon vivant rimed foods . The equipment was estimated to have a useful life of 10 age with nil residual terminal respect . later on two years , in 2009 , it has become apparent that the centre impart only be used till 2011 and allow for be retired at nil salvage value . In addition , there is impairment in its carrying value before long in 2009 and it must be written down by 12 ,900The accounting preaching in such an causal agency has been discussed in an article by Randall W . Leucke and David T . unite , entitled Asset Impairment and disposal : New business enterprise relationship Guidance for long-lived Assets (Leucke and Meeting , 2002 .

The article explores the trend in which the accounting profession seeks to establish a bingle impersonate for all long-lived summationsRequirement 2The source cited above seeks to apologize the treatment once an summation suffers impairment in its carrying value . It recommends that an impairment loss , if any , to be recognized shall be calculated as the amount by which the carrying amount of the asset (asset pigeonholing ) exceeds its fair value at the balance winding-clothes perk up wind FASB issued Statement no 144 , write up for the Impairment or Disposal of Long-Lived Assets (Financial Accounting Standards mount up [FASB] , August 2001 , carve up 33 . Thu! s Healthy Life Food Company should recognize the amount with which the asset value needs to be adjusted (i...If you want to get a full essay, outrank it on our website: BestEssayCheap.com

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