1. Explain how the estimated useful life of an asset for depreciation purposes requires that a going assumption be made.

In FY2016, LA reported cash balances of 18.8m, and an overdraft of 14.9m. The overdraft limit had recently been increased from 10m to 15m during the year.

2. How should the cash balance and overdraft be presented on the financial statements? Can they be netted out to a single number? What assertion is at risk of misstatement regarding the cash and overdraft?