Accountsville
Interactive Technical Note
CF2-111-I-M
Accountsville is an interactive technical note that allows students to p
put into p
practice the theory
y of IAS 36:
Impairment of Assets. Students must complete a series of tasks in the fictitious village of Accountsville,
for the local food producer Martha’s Food Stores.
The scenarios in
Accountsville are focused
on the following assets:
• Investment Property
• Land
• Machinery &Equip.
• Goodwill
• Intangible assets
1
Accountsville
Interactive Technical Note
CF2-111-I-M
Before entering
g the town of Accountsville,, students must consider a g
group
p of assets and decide whether
or not they should be tested for impairment. This section also describes the characteristics of the
company, Martha’s Food Stores, and gives detailed information of each of the assets.
2
Accountsville
Interactive Technical Note
CF2-111-I-M
After reading a short technical summary and completing the initial exercise, students enter the town of
Accountsville. Here they are presented with a series of buildings that they will need to visit to complete
the different tasks. The first of the five scenarios is a walk-through example which guides the students
through the different tasks.
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Accountsville
Interactive Technical Note
CF2-111-I-M
Once inside
O
i id th
the diff
differentt
scenarios, there are a series of
small exercises to help students
discover the carrying amount and
th recoverable
the
bl value.
l
Having discovered the carrying
amount and recoverable value, the
student must visit the Tax and
Legal Authority and complete the
T-accounts for the impairment.
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