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    Non-Current Assets Held For Sale

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    ohmyme sungjae
    The document discusses the classification and accounting treatment of non-current assets held for sale and financial liabilities. It defines non-current assets held for sale as assets that meet the criteria of being available for immediate sale and their sale being highly probable. It also defines financial liabilities as obligations that will result in the outflow of economic benefits. The document asks multiple questions about measuring, presenting, and accounting for both non-current assets held for sale and various types of financial liabilities like accounts payable, notes payable, bonds payable, and convertible bonds.

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    Non-Current Assets Held For Sale

    Uploaded by

    ohmyme sungjae
    33 views2 pages
    The document discusses the classification and accounting treatment of non-current assets held for sale and financial liabilities. It defines non-current assets held for sale as assets that meet the criteria of being available for immediate sale and their sale being highly probable. It also defines financial liabilities as obligations that will result in the outflow of economic benefits. The document asks multiple questions about measuring, presenting, and accounting for both non-current assets held for sale and various types of financial liabilities like accounts payable, notes payable, bonds payable, and convertible bonds.

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    The document discusses the classification and accounting treatment of non-current assets held for sale and financial liabilities. It defines non-current assets held for sale as assets that meet the criteria of being available for immediate sale and their sale being highly probable. It also defines financial liabilities as obligations that will result in the outflow of economic benefits. The document asks multiple questions about measuring, presenting, and accounting for both non-current assets held for sale and various types of financial liabilities like accounts payable, notes payable, bonds payable, and convertible bonds.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    33 views2 pages

    Non-Current Assets Held For Sale

    Uploaded by

    ohmyme sungjae
    The document discusses the classification and accounting treatment of non-current assets held for sale and financial liabilities. It defines non-current assets held for sale as assets that meet the criteria of being available for immediate sale and their sale being highly probable. It also defines financial liabilities as obligations that will result in the outflow of economic benefits. The document asks multiple questions about measuring, presenting, and accounting for both non-current assets held for sale and various types of financial liabilities like accounts payable, notes payable, bonds payable, and convertible bonds.

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    © All Rights Reserved
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    Non-current Assets Held for Sale

    1. What are the conditions required for a non-current asset to be classified as held for sale?
    2. How is a non-current asset or a disposal group held for sale measured in the financial statements?
    3. When is the sale of a non-current asset considered to be highly probable?
    4. What is the amount of the limit in recognized recovery of impairment loss on non-current assets
    held for sale?
    5. Can an asset classified as held for sale be reclassified as held for use? If yes, describe the
    accounting procedures for said reclassification.
    6. How are non-current assets held for sale shown on the face of the statement of financial position?

    Financial Liabilities

    1. What are liabilities? What are the essential characteristics of liabilities?


    2. What are financial liabilities? Give examples of financial liabilities.
    3. Which of the following are financial liabilities?
    a. Accounts payable
    b. Notes payable
    c. Unearned revenues
    d. Gift certificates outstanding
    e. Income tax payable
    f. Deferred tax liability
    g. Provision for product warranties
    h. Bonds payable
    i. Mortgage payable
    4. Discuss the initial recognition principle for financial liabilities. At what amount are financial
    liabilities generally recognized?
    5. Discuss the methods of accounting for cash discounts in the books of the buyer of goods or
    services. How shall each of these methods affect the measurement of the accounts payable at the
    reporting date?
    6. How are interest-bearing notes accounted for? What is their amortized cost at reporting date?
    7. Discuss the accounting principles and procedures for notes bearing an unrealistic interest rate.
    8. What are bonds? State the characteristics of the different types of bonds?
    9. How is a bond price calculated, given the prevailing market rate of similar instruments? When is
    a bond issued at face value? At less than face value? At more than face value?
    10. What are bond issue costs? How are they treated and presented in the financial statements?
    11. How does amortization of premium affect the nominal interest and the carrying value of the
    bond?
    12. How does amortization of discount affect the nominal interest and the carrying value of the bond?
    13. What are detachable share warrants? Why do corporations issue bonds with detachable share
    warrants?
    14. Describe the accounting entries involved in the issue of bonds with share warrants.
    15. What are convertible bonds? Why do corporations issue convertible bonds?
    16. Discuss the accounting for the issuance of convertible bonds.
    17. What is a troubled debt restructuring? What are the different ways of restructuring a troubled
    debt? Describe each briefly.
    18. When would a modification of debt terms qualify to be accounted for as a derecognition of the
    old financial liability and recognition of a new financial liability?
    19. How does an entity classify its financial liabilities in its statement of financial position?
    20. Give at least five (5) disclosures that are presented in the notes to financial statements relating to
    financial liabilities.

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