Lectures Online A Intermediate Accounting -Myassignmenthelp.Com

Question: Discuss About The Lectures Online A Intermediate Accounting? Answer: Introducation In the annual books of QBE, different measures could be used for depicting the impairment charge, which could directly help in depicting the actual financial position of the organisation. Goodwill impairment charges are relevantly imposed on the carrying value if it exceeds the fair value. Furthermore, the impairment charge could directly be deducted from the income statement and balance sheet statement. In this context, Baskerville et al. (2017) mentioned that use of impairment charge could directly allow the organisation to reduce the value of intangible assets as per their fair value. The impairment expenses needs to be recorded in both statement of financial account, which could directly help in depicting the actual firm value. Therefore, the overall one time impairment charge of $150 million will be reflected in the income statement of QBE. However, the overall in payment charge of $600 million will mainly be charged in balance sheet of the organisation. Relevant decline in Good will From the annual report of the organisation could be witness in the balance sheet, where deduction of $600 million will be reported. The relevant imposition of one time in payment charge could directly reduce the profit level of the organisation. Chaney (2017) argued that companies use the impairment expenses to reduce the profit, which could directly help in improving the retained income and provide exemption from the tax. Hence, QBE could list the impairment charge and reduce the overall total assets of the organisation. Stating can QBEs use chairperson as an intangible asset, and disclose it in their financial statement: From the evaluation it could be identified that QBE wants to enlist the chairperson's reputation as intangible assets in the overall financial statement. However, according to IFRS 3 and IE16-IE44 individual persons cannot be listed intangible assets of an organisation, even if their absence could decline the share price for the organisation. According to the relevant rules it is identified that the work of the individual can be listed as intangible assets but the individual itself cannot be evaluated in annual books of the organisation. Initial Accounting for Internally Generated Intangible Assets, directly states that the programs, works, and other measures used by the chairperson could be enlisted as intangible assets of the organisation. For the more, in paragraph 33A it is directly stated that artistic related works such as please, television programs, and literary work can be considered as intangible assets. Nevertheless, the actual artist that created the work cannot be consid ered, as intangible assets of the organisation (Jermias 2017). Therefore, there is adequate proof that the chairperson of QBE cannot be listed as intangible assets in their financial statement. OConnell et al. (2016) stated that persons cannot be evaluated on monetary terms, which is why financial statement does not include reputation and other honorary work of an individual. Furthermore, the organisation could directly use customer related, marketing related, contract based, and technological based criteria for enlisting in their intangible assets. Hence, QBE could not accommodate the reputation of its chairperson as the intangible assets in its annual report. Mentioning the reimbursement that might be enjoyed by Lion Nathan with leaseback transactions and sale of pub: The evaluation of the case directly indicates that Lion Nathan could effectively improve its financial capability if it uses the leaseback transaction after selling the pub. There are two types of benefits that could be obtained from the sale of the pub. Firstly, an increment in the cash reserves of the organisation could be seen, which could directly increase the chance for supporting future projects. Secondly, the organisation could use the leaseback strategy for reducing the overall tax expenses, as relevant exceptions are provided by the authority for leaseback assets. Therefore, relevant benefits could be identified from the use of leaseback transaction made by Lion Nathan for its pub. Rossing, Johansen and Pearson (2016) mentioned that relevant reductions could be identified if the organisation uses the lease option, which could be helpful in improving its retained income. Therefore, it could be assumed that Lion Nathan could directly improve the overall profit generation capac ity by using leaseback method, which might help in increasing cash reserves and reducing tax pay of the organisation. Mentioning the use of finance or operating lease for Lion Nathan: Finance lease option is one of the best measures, which could be used by Lion Nathan, as it helps in reducing the Taxable income by deducting both interest and depreciation of the Asset. Moreover, the finance lease also allows the organisation to enlist the leased asset in their balance sheet for increasing total assets of the organisation. Hence, the use of Finance lease could directly allow Lion Nathan to improve its financial position and operational feasibility. However, the use of operating lease option could only allow Lion Nathan to reduce the income statement with interest expense. Operating lease does not provide any kind of benefits as finance lease, where no incremental in capital assets can be seen and no deduction of depreciation can be identified in the annual report. Thus, the use of operating lease could not allow Lion Nathan to generate the relevant benefits which would be provided from finance lease option. Shawver and Miller (2017) mentioned that companies with the help of finance lease are able to maximize their retained income and capital assets as the leased asset is enlisted in its annual report. Depicting whether Lion Nathan account for any profit or loss on the sale of the pubs: From the evaluation it would be identified that Lion Nathan needs to reflect the sale of pub in its annual report on all the three accounts the balance sheet, income statement and cash flow statement. Lion Nathan could have two aspects from the sale of pub, where it could attain loss of profit from the same. Any of the circumstances will directly reflect on all the three accounts of the annual report. The balance sheet the organisation will directly reflect the reduction in capital assets, where relevant total assets will directly decline. Moreover, any kind of profit or loss that is incurred from the sale of land will reflect on income statement, where it will be added or deducted from the overall revenue generated from operations. Lastly, in the cash flow statement the overall benefit or loss that is obtained from the sale of pub could directly reflect as incremental cash or deficit. Smith (2017) mentioned that assets of an organisation could only be sold after thorough evaluation, where selling of the asset could provides relevant benefits to the company. Mentioning the change in depreciation if pubs are sold and then leased back by Lion Nathan: The relevant depreciation value needs to be changed for the asset, as Lion Nathan will directly sell the asset and procure it on lease agreement. This relevant measure needs to use the actual value of the Asset on which it is sold, as depreciation is always calculated on the purchase value or in this case lease value. Lion Nathan is also using Finance leasing method, which could allow the organisation to enlist the Asset in its balance sheet and charge depreciation and its income statement. Therefore, the depreciation will mainly reflect the actual amount in which the asset is purchased or the lease amount. Hence, the depreciation value will eventually change for the pub and will be enlisted in the annual report. Wen (2016) stated that the use of adequate depreciation method eventually allow the organisation to reduce the tax liability and increased retained income. Reference Baskerville, R., Carrera, N., Gomes, D., Lai, A. and Parker, L., 2017. Accounting historians engaging with scholars inside and outside accounting: Issues, opportunities and obstacles.Accounting History, p.1032373217732349. Chaney, P.K., 2017. Discussion of Accounting quality and loan pricing: The effect of cross-country differences in legal enforcement.The International Journal of Accounting. Freeman, R.E., Greenwood, M., Christensen, A.L., Cote, J. and Latham, C.K., 2016. Numerous researchers have investigated accounting students levels of moral reasoning, ethical choice and judgment employing the Defining Issues Test (DIT) and using its P score as an indicator of moral reasoning. Not surprisingly, a number of DIT studies report conflicting results. Moreover, despite widespread use of the DIT, there is concern that it may not adequately measure all facets of ethical...Journal of Business Ethics,133(1), pp.141-163. Jermias, J., 2017. Development of management accounting practices in Indonesia.The Routledge Handbook of Accounting in Asia, p.104. OConnell, B., De Lange, P., Freeman, M., Hancock, P., Abraham, A., Howieson, B. and Watty, K., 2016. Does calibration reduce variability in the assessment of accounting learning outcomes?.Assessment Evaluation in Higher Education,41(3), pp.331-349. Rossing, C.P., Johansen, T.R. and Pearson, T.C., 2016. Tax Anti-avoidance Through Transfer Pricing: The Case of Starbucks UK. In28th Asian-Pacific Conference on International Accounting Issues. Asian-Pacific Conference. Shawver, T.J. and Miller, W.F., 2017. Moral intensity revisited: Measuring the benefit of accounting ethics interventions.Journal of Business Ethics,141(3), pp.587-603. Smith, M., 2017.Research methods in accounting. Sage. Wen, L., 2016. Integrate Video-Based Lectures into Online Intermediate Accounting II Course Learning.Business Education Innovation Journal,8(2). Zeff, S.A. ed., 2016.Memorial Articles for 20th Century American Accounting Leaders(Vol. 49). Routledge.