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MGT401 Financial Accounting II GDB Spring 2020 Solution & Discussion Last Date: 09-06-2020

MGT401 Financial Accounting II GDB Spring 2020 Solution & Discussion Last Date: 09-06-2020

MGT401 GDB 1 Solution and Discussion

Total Marks 4
Starting Date Wednesday, June 03, 2020
Closing Date Tuesday, June 09, 2020
Status Open
Question Title Property, Plant and Equipment
Question Description

Matter of discussion

Under current situation of COVID19, it is expected that changes in the accounting standards will be required now to account for the effects of this pandemic. Considering the current situation, you are required to discuss how this pandemic will affect the disclosure of property, plant and equipment in financial statements of business entities and will it affect the treatment of borrowing cost utilized for development of property, plant and equipment.

Note:

For acquiring the relevant knowledge, do not rely only on handouts but also watch the course video lectures and read additional material available online or in any other mode.

Important Instructions:

· Your discussion must be based on logical facts.

· The GDB will open and close on above specified date and time. Please note that no grace day or extra time will be given for posting comments on GDB.

· Use the font style “Times New Roman” and font size “12”.

· Your answer should be relevant to the topic i.e. clear and concise.

· Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

· Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.

· You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.

· Obnoxious or ignoble answer should be strictly avoided.

· You cannot participate in the discussion after the due date via email.

· Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

· For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS.


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Replies to This Discussion

The disclosure requirements of Property Plant Equipment & the borrowing costs will not change in current situation. It will change if the IAS 16 which relates to Property Plant & Equipment will change as regards disclosure requirements of Property Plant & Equipment and same is for borrowing costs whose IAS is 23.

The only change may be in the useful life of Property Plant & Equipment that is it can increase as the business is facing a huge decline and depreciation rate of Property Plant & Equipment may also decrease.

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