7/26/2019 AC 521 HW Chapter 7

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Amores, Vianca PearlBSA-4Mme. Teresita Nilda Chan-Restificar, CPA, MAIA

Eercise !."

". A

#. E$. %4. C&. B'. A!. B(. %). C"*.E+

Eercise !.#

PROPERTY PLANT AND EQUIPMENT (PPE) YES

NO

NA

REMARKS

1. Is there a discls!re "r each class "PPE# the $rss carr%i&$ a'!&t a&d theacc!'!lated dereciati& (i&cl!di&$acc!'!lated i'air'e&t lsses) at thee$i&&i&$ a&d e&d " the erid*

+. Is there a rec&ciliati& " the carr%i&$a'!&t i& resect " each class " PPE atthe e$i&&i&$ a&d e&d " the eridsh,i&$-

a) additi&s

) dissals

c) ac/!isiti&s thr!$h !si&essc'i&ati&s

d) i&creases r decreases d!ri&$ theerid res!lti&$ "r'

re0al!ati&s a&d "r' i'air'e&tlsses rec$&ied r

re0ersed directl% i& e/!it% !&der S2AS34

e) i'air'e&t lsses rec$&iedd!ri&$ the erid

") i'air'e&t lsses re0ersed d!ri&$the erid

$) dereciati&

h) e5cha&$e di6ere&ces "r' the

7/26/2019 AC 521 HW Chapter 7

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Amores, Vianca PearlBSA-4Mme. Teresita Nilda Chan-Restificar, CPA, MAIA

retra&slati& " PPE ""rei$& e&tities

i) tra&s"ers et,ee& class " PPE (e.$."r' PPE !&der

c&str!cti& t la&d a&d !ildi&$s)

a&d

7) ther '0e'e&ts*

3. 2r PPE stated at re0al!ed a'!&ts#,ere the "ll,i&$ ite's disclsed*

a) asis !sed t re0al!e assets

) e6ecti0e date " re0al!ati&

c) ,hether a& i&dee&de&t 0al!er ,asi&0l0ed

d) &at!re " a&% i&dices !sed t deter'i&erelace'e&t cst

a&d

e) the carr%i&$ a'!&t " each class" PPE that ,!ld ha0e

ee& i&cl!ded i& the 8&a&cialstate'e&ts had the assets ee&

carried at cst less dereciati&.

9. Is there a discls!re & the e5iste&cea&d a'!&ts " PPE ,hse title isrestricted*

:. ;ere the a'!&ts " rert%# la&ta&d e/!i'e&t led$ed as sec!rit% "r

Liailities i&dicated*

4. Is the a'!&t " e5e&dit!res &acc!&t " PPE i& the c!rse "c&str!cti& disclsed*

7/26/2019 AC 521 HW Chapter 7

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Amores, Vianca PearlBSA-4Mme. Teresita Nilda Chan-Restificar, CPA, MAIA

a) the carr%i&$ a'!&t " te'raril%idle PPE

) the $rss carr%i&$ a'!&t " a&%"!ll% dereciated PPE that

is still i& !se

c) the carr%i&$ a'!&t " PPE retired"r' acti0e !se a&d held

"r dissal a&d

d) ,he& PPE is carried at cst lessdereciati the "air 0al!e

" PPE i" this is 'ateriall% di6ere&t"r' the carr%i&$ a'!&t.

The fair valueshould be disclosesince it is materialdierent from thecarrying amount.We assumed thatthe two amountsare materiallydierent because

the fair value andcarrying amount oidle property arematerially dieren

Errors". Carrin/ 0al1e of PPE as of %ecem2er $", #**!

a. Carrin/ Val1e 3er Si/nificant Acco1ntin/ 1d/ments andEstimates Ph3 #(.! Billion

2. Carrin/ Val1e 3er S133ortin/ Sched1le of PPE Ph3 "(,'(*,$*(#. %e3reciation E3ense for C5 #**(

a. Amo1nt 3er Si/nificant Acco1ntin/ 1d/ments and Estimates Ph3".) Billion

2. Amo1nt 3er s133ortin/ Sched1le of PPE Ph3 ",')",($!$. 6oss on dis3osal

a. 6oss 3er Note"" Ph3 (".4 million2. Correct 6oss Ph3 !4.! million

4. The fair 0al1e sho1ld 2e disclosed since it is materiall different from thecarrin/ amo1nt. 7e ass1med that the t8o amo1nts are materialldifferent 2eca1se the fair 0al1e and carrin/ amo1nt of idle 3ro3ert aremateriall different