—4 Domingo , Pocel_ C_ Date Ocigoer I, 2021 dea A beore: Lesson 3 ERROSE 1 _— Cosh price qaid ned of PLGGe dswunt including, P8,900 oS vemyerable dar Freight asi 4p ship equipment te factory __ Dired employee wages 40 instoh equipmete Trernol_espedolisd teatnicion needed fe cemplede fing inslallotien —— — Matevials consumed in she Yesting proces Virest employee woges 40 tes} equipment Leap fees to droll “he euipncel purchase ant Government grant vecewed on purchase ob the equipment (o.0) Total Cost Capitalied oe £29.20 (TENN Not CAPA DISCLOSURE = Fecoveratle tax: _ _- Sucevode (Raton Sheet) - Repair wosts ; - - Cperating Expenie (\nvome Stoemerd) Lasts of raining employees ; ~Delerred as Unenencd Revenve - Overhead Wests, ond Liability and Amortize on the = Insurance lost oasis of Equipment Depreciation eat |Exegaase 2 Copitatized Lost : Direc} Moterial 1,400,000 bs Direct Loloor _ 1, GeO, 600 Wteres$ - Wbeo a Vess:Intevert on excess Avede 3,000 ___PA of restoration ests 2.564 Wal _Coriatied toe 32A88, 554, ___INTEREST_ Comput ——— beta Frew. x se x IIa Extract > ALLOCATION OF THE PUECHASE PRICE WH ProcerDs ALLOCATION OA x BAT oe SpecioNized lathe 290 00 (72021 350,000) F 96,400 Rolkotic _assemtdy mackie 290 ,e00 (P| 950,000) 49,900 Laser guided dotting machine 230,000 ("| 290 ceo) Aw, so Delivery wc 920,600 (70° | 950 ,c00 ) VAsGe0 Tera #920 ,000 victoryBeast 4 0) WIT COMMEROPL SUDSTANCE Pratghy + New tayipment 7Fi9,000 Aeowmvlated Depreciation - Old Equipment 10,000 Old Favioment F 35,000 Cash 9.e00 Goin on disposal of tquipment 2.000 Lhong,, Com ae P2009 Rew _Fovipment Z (1,000 heovmmulated Deprecioken - Old tavipment Som O\d_ Equipment F aA,000 Goin of Vigposal of tquipment Gx 1b) WITHOUT _COMMEROAAL SuBSTAKCE . Protohy : bs New Fquiigment Fito Acoomvlated Tepreciation - Old Equigment tomo Old_ Equipment F 2500 Gosh 9.000 Zhong, ; Cost F 3.000, New Equipment - \,o00 Acumvlaled Depreciation - old Equigment 2,000 Old coviprment Fa1.c00 Wvicrory©) Pralanw oe __ New Equipment os Fyq.eo heoomviated Depreciation -Old Equipment SOO — Loss_on Disposal of Equipment < 2,000 _ Old Equipment = dost Expose 5 a a ee ___Transackon 1 The « assels fe an exchange for ho onan share mys)_be at the Jair value as i is requrecl boy the IFRS W she 80.000 i rekiolky wepresenis jhe fair valve oh Ne assem acquired , then it_muct be vied Sor the ____presentation ond recording Puegoses = _ Somputen OOD lomo Sharer ee Transouion 2. The Jerm “non-inieres} bearing note” does net mean np \nierert ot all. The meres} if Implied and is already, \ncluded_ in the Sace valve of the note To be reported _ riGlly _, Ahe Present Valve of the pole is compyled Using she formula : _ x Aherefore _ aay Office Frviture FAG, 994 2 FAs.c00 Noles Taypie AFL O8A (4404) Cash oa 27F4y,294 - = victoryEXERCISE Oo a) Deferral Merhod OlGce_Condo F 95.200 Delewed Grant FJo,woo Cash 529,000 by offset Method hee onde 595,000 Cos 758,000 Under the deferral method, she entidy will yepor} am onval depreciation of Fv,999 (Gas.e0 +20) ond annval grant inome of T2,000 (o.goo +0) in Ys invome stalement . On the other hand, under Whe _olfcer_method , the entity wil repord only the annval Loxon omdunting +o 714,939 (599 +30) and no grant invome will be rewognired athre iC wo diffevence in invme beimeen derral method ond oifset wmerhod. Exepose 4 December 91, a019: Depreviakion txpence (\,s0.00/93) 44.444 Building x Revalwation Soveplus Fou. Lies9.000 = (100.000 - 44.444) ] December _3', 9090 Depreciokion Tepense (1:950.009] 94) Pag.074 Revawokon Sveplys 9,49 [ivcen 000 - (1,280.00 - 49,049) ] ; - Building, Pima WuicroryDecember \ , aval a Deprevasion Expense (hove.800/ 95 ) F4o,co Building _ igv,060 ee Reideation Supls [sta>,e00 - (\ceo.20 - 40,0) ] Beerase 9 - December 21, g0a0 rm in valve of oe qooperty Youve __Navest ment ee —__- 2 a a. ol _ neiynente Poperty Fiisico : oo Goin in valve oh Investment givpedy, Fis pe EXERASE_Q = Regains Gnd mainenane expense F 2.02 _ Cash : F 200 Aecumvloded Deprenicvioin - Building {0.209 Less on Disposal 99,204 Duilding {8,646 T 4 4 Goes = Orejna. a o§_bollev: = 125,000 _* - Jo¥, Ue Gi Gaus) Vepreiostion of oiler: 2 (lo, 696/40) XG =F lte,202 PUPCAASE oF @DILER ENTRY - Bolle 7F7\95,000 Cash Paso ‘victoryPRINTING DF THe BUILDING (Aor CAPITAIZED) ENTRY Repairs and Maislenance &penit Fis,oo Cas Fis,coo DILDING REPARATICN (CapwalizedD) ENTRY Building F24,000 Cash F stow ARE DaMace ENTRY Repairs and Moiatmonce txptne Fon Cash Foun DEPRECAATVON ENTRY Depreriation expense Fs.032, heomoiakd Depreciation -Quilding PIs, 2>9 Acopwlased Depreviativn - Builer 2.84! Wvicrory