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AE 322 - M2

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I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
MODULE02
AE322:I
NTERMEDI
ATE
ACCOUNTI
NG3
NAME:
BESI
N,
ROSALLEN.
St
udentNumber
:
18012593
Cour
se:Bachel
orofSci
encei
nAccount
i
ngI
nf
or
mat
i
onSy
st
em
Sect
i
on:
BSAI
S3201
Teacher
’
sName:
MR.JOEMARIGOBANGCO
Dat
eSubmi
t
t
ed:
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BESTLI
NK
COLLEGEOFTHEPHI
LI
PPI
NES
I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
PRELI
MI
NARYACTI
VI
TI
ES
Name:
BESI
N,
ROSALLEN.
Year&Sect
i
on:
BSAI
S3201
Basedony
ourownunder
st
andi
ngwhati
sNoncur
r
entAsseti
nAccount
i
ng?
ANSWER:Noncur
r
entAssetar
eacompany
’
sl
ongt
er
mi
nv
est
ment
sf
orwhi
cht
hef
ul
l
v
al
uewi
l
l
notber
eal
i
zedwi
t
hi
nt
heaccount
i
ngy
ear
.
Exampl
esofNoncur
r
entAsset
si
ncl
udei
nv
est
ment
si
not
hercompani
es,
i
nt
el
l
ect
ual
pr
oper
t
yl
i
kePat
ent
s,
andPr
oper
t
y
,
Pl
antandEqui
pment
.
ANALYSI
S,
APPLI
CATI
ONANDEXPLORATI
ON
ACTI
VI
TY1
Di
r
ect
i
on:
Sol
v
et
hepr
obl
em.
Sol
v
et
hepr
obl
em bel
ow
I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
ACTI
VI
TY2
Di
r
ect
i
on:
Sol
v
et
hepr
obl
em.
Sol
v
et
hepr
obl
em bel
ow
I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
GENERALI
ZATI
ON
Name:
BESI
N,
ROSALLEN.
Year&Sect
i
on:
BSAI
S3201
Di
r
ect
i
on:
Answeront
hespacepr
ov
i
ded.
Whatdi
dy
oul
ear
nedaboutnoncur
r
entassethel
df
orsal
eanddi
scont
i
nuedoper
at
i
on?
Noncur
r
entAssetHel
df
orSal
e
PFRS5,
par
agr
aph6,
pr
ov
i
dest
hatanoncur
r
entassetordi
sposal
gr
oupi
scl
assi
f
i
ed
ashel
df
orsal
ei
ft
hecar
r
y
i
ngamountwi
l
l
be,
r
ecor
dedpr
i
nci
pal
i
t
yt
hr
oughasal
e
t
r
ansact
i
onr
at
hert
hant
hr
oughcont
i
nui
nguse.
Condi
t
i
onf
orcl
assi
f
i
cat
i
onashel
df
orsal
e
Anoncur
r
entassetordi
sposal
gr
oupshal
l
becl
assi
f
i
edashel
df
orsal
ei
ft
he
f
ol
l
owi
ngcondi
t
i
onsar
epr
esent
:
1.Theassetordi
sposal
gr
oupi
sav
ai
l
abl
ef
ori
mmedi
at
esal
ei
npr
esentcondi
t
i
on
2.Thesal
emustbehi
ghl
ypr
obabl
e
Di
scont
i
nuedOper
at
i
on
UnderAppendi
xofPFRS5,
adi
scont
i
nuedoper
at
i
oni
sdef
i
nedasacomponentofan
ent
i
t
yt
hatei
t
herhasbeendi
sposedofori
scl
assi
f
i
edashel
df
orsal
eand:
a.Repr
esent
sasepar
at
emaj
orl
i
neofbusi
nessorgeogr
aphi
cal
ar
eaofoper
at
i
ons.
b.I
spar
tofsi
ngl
ecoor
di
nat
edpl
ant
odi
sposeofasepar
at
emaj
orl
i
neofbusi
ness
orgeogr
aphi
cal
ar
eaofoper
at
i
ons
c.I
sasubsi
di
ar
yacqui
r
edexcl
usi
v
el
ywi
t
hav
i
ewt
or
esal
e.
Componentcl
assi
f
i
edashel
df
orsal
e
Thedi
scont
i
nuedoper
at
i
oni
saccount
edf
orasadi
sposal
gr
oupcl
assi
f
i
edashel
d
f
orsal
e.Thecomponentofanent
i
t
ymustbeav
ai
l
abl
ef
ori
mmedi
at
esal
ei
nt
he
pr
esentcondi
t
i
onandt
hesal
emustbehi
ghl
ypr
obabl
e.
Ti
mi
ngofr
epor
t
i
ng
Acomponentofanent
i
t
yi
scl
assi
f
i
edasdi
scont
i
nuedoper
at
i
onoft
hedat
e:
a.Whent
heent
i
t
yhasact
ual
l
ydi
sposedoft
heoper
at
i
on.
Whent
heoper
at
i
onmeet
st
hecr
i
t
er
i
at
obecl
assi
f
i
edashel
df
orsal
e.
I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
ASSI
GNMENT
Name:
BESI
N,
ROSALLEN.
Year&Sect
i
on:
BSAI
S3201
Di
r
ect
i
on/
I
nst
r
uct
i
on:Answert
hef
ol
l
owi
ngquest
i
on.
Obj
ect
i
v
e1:Expl
ai
nt
het
er
m hi
ghl
ypr
obabl
e.
Def
i
ni
t
i
onofHi
ghl
yPr
obabl
e
Fort
hesal
et
obehi
ghl
ypr
obabl
e,
t
hef
ol
l
owi
ngcondi
t
i
onsmustbemet
:
1.Managementmustbecommi
t
t
edt
oapl
ant
osel
l
t
heassetordi
sposal
gr
oup.
2.Anact
i
v
epr
ogr
am t
ol
ocat
eabuy
erandcompl
et
et
hepl
anmusthav
ebeen
i
ni
t
i
at
ed.
3.Thesal
ei
sexpect
edt
obecompl
et
edsal
ewi
t
hi
noneyearf
r
om t
hedat
eof
cl
assi
f
i
cat
i
onashel
df
orsal
e.
4.Theassetordi
sposal
gr
oupmustbeact
i
v
el
ymar
ket
edf
orsal
eatasal
epr
i
ce
t
hati
sr
easonabl
ei
nr
el
at
i
ont
ot
hef
ai
rv
al
ue.
5.Act
i
onr
equi
r
edt
ocompl
et
et
hepl
ani
ndi
cat
et
hati
ti
sunl
i
kel
yt
hatt
hepl
anwi
l
l
besi
gni
f
i
cant
l
ychangedorwi
t
hdr
awn.
Obj
ect
i
v
e2:Expl
ai
nt
hepr
esent
at
i
onofadi
scont
i
nuedoper
at
i
oni
nt
hest
at
ementoff
i
nanci
al
posi
t
i
on.
Di
scont
i
nuedOper
at
i
on
UnderAppendi
xofPFRS5,
adi
scont
i
nuedoper
at
i
oni
sdef
i
nedasacomponentofanent
i
t
y
t
hatei
t
herhasbeendi
sposedofori
scl
assi
f
i
edashel
df
orsal
eand:
a.Repr
esent
sasepar
at
emaj
orl
i
neofbusi
nessorgeogr
aphi
cal
ar
eaofoper
at
i
ons.
b.I
spar
tofsi
ngl
ecoor
di
nat
edpl
ant
odi
sposeofasepar
at
emaj
orl
i
neofbusi
nessor
geogr
aphi
cal
ar
eaofoper
at
i
ons.
c.I
sasubsi
di
ar
yacqui
r
edexcl
usi
v
el
ywi
t
hav
i
ewt
or
esal
e.
Pr
esent
at
i
oni
nst
at
ementoff
i
nanci
al
posi
t
i
on
PFRS5,
par
agr
aph38,
pr
ov
i
dest
hatanent
i
t
yshal
l
al
sopr
esentsepar
at
el
yont
hef
aceoft
he
st
at
ementoff
i
nanci
al
posi
t
i
ont
hef
ol
l
owi
ngi
nf
or
mat
i
on:
a.Asset
soft
hecomponenthel
df
orsal
esepar
at
el
yf
r
om al
l
ot
herasset
s.
b.Asset
soft
hecomponenthel
df
orsal
ear
emeasur
edatt
hel
oweroff
ai
rv
al
uel
esst
ocost
ofdi
sposal
andt
hei
rcar
r
y
i
ngamount
.
c.Li
abi
l
i
t
i
esoft
hecomponentsepar
at
el
yf
r
om al
l
ot
herl
i
abi
l
i
t
i
es.
d.Nondepr
eci
at
i
on – noncur
r
entasset
soft
he componenthel
df
orsal
e shal
lnotbe
depr
eci
at
ed.
I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
EVALUATI
ON
Name:
BESI
N,
ROSALLEN.
1.C-Noncur
r
entAsset
2.B-Di
sposalgr
oup
3.C-Bot
haandb
4.A–Tr
ue
5.A–Tr
ue
6.A-Di
scount
edOper
at
i
on
7.A–Tr
ue
8.C-Bot
haandb
9.A-Tr
ue
10.
A-Tr
ue
Year&Sect
i
on:
BSAI
S3201
I
nt
er
medi
at
eAccount
i
ng3
Noncur
r
entAssetHel
df
orSal
eandDi
scont
i
nuedOper
at
i
on
1.I
ti
sanassett
hatdoesnotmeett
he
def
i
ni
t
i
onofacur
r
entasset
.
A.
Cur
r
entAsset
B.
Cur
r
entLi
abi
l
i
t
i
es
C.
Noncur
r
entAsset
D.
Noncur
r
entLi
abi
l
i
t
i
es
2.I
ti
sagr
oupofasset
st
obedi
sposedof
,
bysal
eorot
her
wi
se,
t
oget
herasagr
oupi
n
asi
ngl
et
r
ansact
i
on,
andl
i
abi
l
i
t
i
esdi
r
ect
l
y
associ
at
edwi
t
ht
hoseasset
st
hatwi
l
l
be
t
r
ansf
er
r
edi
nt
het
r
ansact
i
on.
A.
Gar
bagegr
oup
B.
Di
sposalgr
oup
C.
Tr
ashgr
oup
D.
Di
scar
dgr
oup
3.Anoncur
r
entassetshal
l
becl
assi
f
i
edas
hel
df
orsal
ei
ft
hef
ol
l
owi
ngcondi
t
i
onsar
e
pr
esent
A.
Theassetordi
sposalgr
oupi
sav
ai
l
abl
e
f
ori
mmedi
at
esal
ei
npr
esentcondi
t
i
on
B.
Thesal
emustbehi
ghl
ypr
obabl
e
C.
Bot
haandb
D.
Noneoft
heabov
e
4.Anent
i
t
yshal
l
measur
eanoncur
r
ent
assetordi
sposal
gr
oupcl
assi
f
i
edashel
d
f
orsal
eatt
hel
owerofcar
r
y
i
ngamountor
f
ai
rv
al
uel
esscostofdi
sposal
.
A.
Tr
ue
B.
Fal
se
C.
Ei
t
heraandb
D.
Nei
t
heraandb
5.I
ft
hef
ai
rv
al
uel
esscostofdi
sposal
i
s
l
owert
hancar
r
y
i
ngamountoft
heassetor
di
sposal
gr
oup,
t
hewr
i
t
edownt
of
ai
rv
al
ue
l
esscostofdi
sposal
i
st
r
eat
edasan
i
mpai
r
mentl
oss.
A.
Tr
ue
B.
Fal
se
C.
Ei
t
heraandb
D.
Nei
t
heraandb
6.I
ti
sdef
i
nedasacomponentofanent
i
t
y
t
hatei
t
herhasbeendi
sposedofori
s
cl
assi
f
i
edashel
df
orsal
e
A.Di
scount
edOper
at
i
on
B.
Di
scont
i
nuedOper
at
i
on
C.
Notdi
scount
edOper
at
i
on
D.
Notdi
scont
i
nuedOper
at
i
on
7.Thedi
scount
edoper
at
i
oni
s
account
edf
orasadi
sposal
gr
oupcl
assi
f
i
edashel
df
orsal
e.
A.Tr
ue
B.
Fal
se
C.
Ei
t
heraandb
D.
Nei
t
heraandb
8.Acomponentof
anent
i
t
yi
s
cl
assi
f
i
edas
di
scont
i
nued
oper
at
i
onoft
he
dat
e
B.
Whent
heoper
at
i
onmeet
st
hecr
i
t
er
i
at
o
becl
assi
f
i
edashel
df
orsal
e.
C.
Bot
haandb
D.
Noneoft
heabov
e
9.PFRS5,
par
agr
aph12,
pr
ohi
bi
t
st
he
r
et
r
oact
i
v
ecl
assi
f
i
cat
i
onasadi
scont
i
nued
oper
at
i
onwhent
hedi
scont
i
nuedcr
i
t
er
i
a
ar
emetaf
t
ert
heendofr
epor
t
i
ngper
i
od.
A.
Tr
ue
B.
Fal
se
10.Thecomponentofanent
i
t
ymustbe
av
ai
l
abl
ef
ori
mmedi
at
esal
ei
nt
hepr
esent
condi
t
i
onandt
hesal
emustbehi
ghl
y
pr
obabl
e.
A.
Tr
ue
B.
Fal
se
C.Ei
t
heraandb
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