Assignment
Details and instructions
You can choose to do Part A either as an individual or you can pair up with another student who is currently enrolled in the unit. For administration purposes, you must email the Unit Coordinator (UC) about your intention to work in a pair.
Some questions of this assignment may have a word count limit. You should make every effort and attempt to stay within the prescribed limit.
Academic Learning Centre
To ensure you understand the questions, instructions and expectations, it is highly recommended to seek help and guidance from the Academic Learning Centre (ALC). The ALC can help you with your writing skills and check your narrative answers for grammatical correctness and that your arguments and explanations are clear and logical. The ALC will also help you to ensure that you have actually answered the questions.
Part A - Revaluations and impairment testing of non-current assets
Question 1
One of the board of directors of Simba Ltd has proposed that the company adopt the revaluation model for fixed assets. Some of these assets are hard to obtain and certain items have increased in value in the current period, however it is difficult to know what their fair value is. The director is arguing that fair value will improve the ‘look' of the company's Statement of Financial Position, and may eliminate the need for depreciation.
Required
Discuss whether the board should adopt the director's proposal.
Question 2
‘Impairment is only relevant to assets carried under the cost model. For assets carried under the revaluation model, such as our land and buildings, increases and decreases in fair value dictate whether carrying amounts are adjusted up or down. We don't bother testing land and buildings for impairment'.
Required
Critically evaluate the above statement.
Question 3
Find the Annual Report Medibank for 2018 on the Australian Securities Exchange. Evaluate this Annual Report consistent with the requirements of AASB 13/IFRS 13 Fair value Measurement, AASB 116/IAS 16 Property Plant and Equipment, and AASB 136/IAS 39 Impairment of Assets.
Required:
(a) Which assets are carried at fair value?
(b) State where and what disclosures regarding the fair value measurement of assets have been made.
(c) Which assets are tested for impairment?
(d) State where and what disclosures regarding the impairment of assets have been made.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.