MAA 716 Financial AccountingWRITTEN ASSIGNMENT TRIMESTER 2, 2015PART 1 QUESTION 1Submission date and available mark due date:Marks: Wednesday 12 August 2015 before 11.59 pmThis W r i t t e n Assignment represents 4 0% of the total markfor the unit and consists of three questions. Question 1 will be marked out of 20 and converted to a mark out of 10%.Assignment instructions1. Please monitor CloudDeakin for any instructions/announcements.2. You will need to have completed Topic 3 and 4 to complete this question(Q1).Submission instructions1. This assignment is to be submitted ONLINE ONLY (You are NOT required to submit a hard copy).2. You must type in your answer for each question.3. The c o m p l e t e d assignment question must be submitted into the allocated area on CloudDeakin under the Dropbox folder.4. You are not required to upload an Assignment Cover Sheet. You will complete a Plagiarism declaration when you access the Dropbox.5. Once submitted you cannot take your assignment back BUT you CANSUBMIT another version. The most recent version submitted will be marked.A note on plagiarism and collusionPlagiarism and collusion are forms of cheating and is considered a seriousacademic misconduct, a n d s e v e r e p e n a l t i e s a r e a s so c i a t e d w i t h t h e m.Please refer to the MAA716 u n i t g u i d e f or your r e s p o n s i b i l i t i e s w i t hr e g a r d t o p l a g i a r i s m a n d o t h e r academic offences.

MAA716 Assignment Q1 Tri 2 2015Penalties applied in this assignment1.2.Assignment submitted after the due date will attract a penalty of 1.5 marksper day (out of the total of 20 marks for Question 1).The final examination is the only hurdle requirement for the unit. If you choosenot to submit this assignment you will score zero. There is no provision forthe mark to be added to the final exam mark.Discussion area for this assignmentThere is a discussion area on CloudDeakin entitled Assignment Discussion. Thisarea is for you to discuss the assignment. It is an area to help each other it isNOT an area for the answer to be provided to each other.Receiving your mark and suggested solutionYour mark for the assignment will be available in Grades w i t h i n 15 workingd a y s from your assignment submission date.MAA716 Assignment Q1 Tri 2 2015QUESTION 1On 1 July 2012, Goldwell Ltd acquired land for $ 3 000 000 and machinery for$ 2 000 000. Goldwell Ltd uses cost model to account land and revaluation model toaccount for machinery. Goldwell Ltd depreciated the machinery over its useful life of fouryears, using straight-line method. Disposal value at the end of useful lifetime wasassessed as zero.The following information concerning the asset measurement was available.DetailFair ValueCost of Disposal Value in Use$ 2 500 000$ 200 000$ 2 400 000NilNil$ 2 400 00030 June 2013LandMachinery2 200 00030 June 2014Land$ 2 400 000$150 000Machinery$1 400 000Nil$ 2 800 000$ 200 000Nil30 June 2015LandMachinery600 000Nil$ 3 200 000NilIndicators of impairment and/ or reversal of impairment existed at relevant dates for landonly.MAA716 Assignment Q1 Tri 2 2015Required:a) Prepare general journal entries in the books of Goldwell Ltd over the periodfrom, 1 July 2012 to 30 June 2015, in accordance with the requirements ofAASB 116 Property plant and Machinery and AASB 136 Impairment ofAssets (Ignore the tax effect).(11 marks)b) Comment o nwhyabusinessmaychoosetoadopttherevaluation model for valuation of non- current assets.(4 marks)c) What could be the possible reasons for impairment of land if there is any; youneed to refer to AASB 136 Impairment of assets when explaining your answer.(5 marks)Provide all workings necessary to derive your answer.MAA716 Assignment Q1 Tri 2 2015