Summary CPA Australia Foundation Financial Accounting and Reporting FORMULA SHEET

CCA
Deprival value
= The lower of replacement cost and recoverable amount

Recoverable amount
= The higher of fair value - cost of disposal
= Value in use

Value in use
= PV of estimated cash flows generated by the asset - Net disposal value

PPE
Initial cost of PPE
= Purchase price + Direcetly attributable costs + Removal costs

Subsequent cost of PPE
Cost model
Carrying amount of asset
= Historical cost - Accumulated depreciation - Accumulated impairment loss
Revaluation model
Revalued amount of asset
= Historical cost - Subsequent accumulated depreciation - Subsequent accumulated impairment loss

Residual value = Selling price/Gains from disposal - Expected cost of disposal

Gains/Loss on disposal
= Net disposal proceeds - Carrying amount of asset

Intangible assets
Initial cost of intangible assets
= Purchase price + Directly attributable costs ​

Cost model
= Historical cost - Accumulated amortization - Accumulated impairment

Derecognition
Gain/loss on disposal = Net disposal proceeds - Carrying amount of asset

Impairment = Carrying amount > Recoverable amount

Impairment loss
= P/L
= Carrying/Revalued amount - Recoverable amount

Revaluation surplus = Market value - Book value

Impairment of CGU = Carrying amount of CGU - Recoverable amount of CGU

Pro rated - The highest of fair value, value in use and zero

Reversal of impairment loss
Carrying amount adjusted to the lower of Recoverable amount and Original carrying amount