# CIMA

IAS 39 Financial Instruments: Recognition and Measurement. Accounting. Disposal of Fixed Assets Journal Entries. Disposal of a fixed asset is the withdrawal of a fixed asset from use upon the completion of its useful life or due to lower productivity in its later life.

Disposal of an Asset with no Salvage Value In a rare situation where the salvage value of the fixed asset is zero, there will be no terminal cash flow and the journal entry will be as follows: Gain on Disposal However, if an asset has a salvage value; it is likely that the disposal will cause gain or loss. When a fixed asset is sold at a price higher than its carrying amount at the date of disposal, the excess of sale proceeds over the carrying amount is recognized as gain. Example On January 1, 2006 Company A purchased equipment worth of \$2 million.

The company charges depreciation expense of (2,000,000 − 200,000) ÷ 5 or \$360,000 each year. The equipment account and the related accumulated depreciation account are written off in the process of disposal and the gain is reported in income statement. Loss on Disposal Example: Standard Costing - AccountingCrosswords.com.

Standard costing means assigning the expected, budgeted costs to the goods manufactured, the goods in inventory, and the goods sold.

In other words, the amounts assigned are the costs that should occur when manufacturing products. The actual costs are then compared to the standard costs and any differences are reported as variances. Since the standard costs are often tied to the company's annual profit plan, a variance is also an indicator that the actual profit will be different from the planned amount.

To illustrate standard costs, let's assume that a company's profit plan includes a standard of 15 pounds of material at \$4 per pound for each unit produced. The standard for the direct labor is 30 minutes at \$12 per hour for each unit manufactured. If the company manufactures 100 units and uses 1,550 pounds of material, there will be an unfavorable direct material usage variance of \$200. There are similar calculations for the direct labor. Linear programming: Simplex method example. Example (part 1): Simplex method Solve using the Simplex method the following problem: Are considered the following phases: 1.

Turning the inequalities into equalities Introduce a slack variable for each constraint of the type ≤ to turn them into equalities, giving the following linear equation system: 2. 3. In columns will appear all basic variables of the problem and the slack/surplus variables. 4. When at the Z row there aren't negative values, the optimal solution of the problem has been reached. 5. A. 6. The new coefficients of the pivot row , t (P5), are obtained dividing all of the coefficients from such row among the pivot element, 3, that is the one necessary to turn into 1. Following, with Gaussian reduction we do zeros the remainders terms of that column, with it we get the new coefficients from the other rows including that belong to the objective function row Z.

Also, it can be done in the following way: Working of analogous form that before, we obtain the board: Ci_nov_02_p24-25. CVs.

### General Accounting

Concept-Break Even Analysis with Multiple Products. Process Costing Cost Accounting : Study Notes, Problems Solutions, Question Answers. CIMA - Chartered Institute of Management Accountants. Kaplan Exam Tips.