Assicament bro 2 of 3 International Accounting Standard (IAS) 16 Property Plant & Equipment and IAS 38 Intangible Assets both deal with Non-Current Assets in the Financial Statements, Question 1: Required: Distinguish between the 2 types of Non-current assets, giving definitions recognition criteria and an explanation of the accounting treatment of both in the financial statements (30 Marks) Question 2: Omega Ltd question The following items of property plant and equipment were included in the records of Omega Ltd 1" February 2020: Accumulated Carrying Depreciation amount Land and Buildings Plant and Machinery Fixtures and fitting Motor and Vehicles Cost 468,000 352,000 175,000 120,000 198,400 68,700 82,000 468,000 153,600 106,300 38,000 During the year ended 31" January 2021 the following occurred: - 1. The charge depreciation on buildings at 2% per annum. Buildings represent 348,000 of the amount at Feb 2020. The buildings were bought new on 1" Feb 2020 2. An item of plant costing 88,000 on 1 July 2018 is now recognised as having a useful life of only five years in total. 3. New plant was acquired for 100,000 on 15 August 2020 and the company received a government grant of 20,000 towards the cost. The company uses the deferred credit method in accounting for government grants. 4. On 30 September 2020 a vehicle which was originally purchased for 19,000 during the year ended 31 January 2019 was traded in at a value of 13,000 against a new model costing 28,000. Assament brief: 2 of 3 International Accounting Standard (IAS) 16 Property Plant & Equipment and IAS 38 Intangible Assets both deal with Non-Current Assets in the Financial Statements, Question 1: Required: Distinguish between the 2 types of Non-current assets, giving definitions recognition criteria and an explanation of the accounting treatment of both in the financial statements, (30 Marks) Question 2: Omega Ltd question The following items of property plant and equipment were included in the records of Omega Ltd 1" February 2020: Accumulated Carrying Depreciation amount Land and Buildings Plant and Machinery Fixtures and fitting Motor and Vehicles Cost 468,000 352,000 175,000 120,000 198,400 68,700 82,000 468,000 153,600 106,300 38,000 During the year ended 31" January 2021 the following occurred: - 1. The charge depreciation on buildings at 2% per annum. Buildings represent 348,000 of the amount at Feb 2020. The buildings were bought new on 1"Feb 2020 2. An item of plant costing 88,000 on 1 July 2018 is now recognised as having a useful life of only five years in total. 3. New plant was acquired for 100,000 on 15 August 2020 and the company received a government grant of 20,000 towards the cost. The company uses the deferred credit method in accounting for government grants. 4. On 30 September 2020 a vehicle which was originally purchased for 19,000 during the year ended 31 January 2019 was traded in at a value of 13,000 against a new model costing 28,000 Assicament bro 2 of 3 International Accounting Standard (IAS) 16 Property Plant & Equipment and IAS 38 Intangible Assets both deal with Non-Current Assets in the Financial Statements, Question 1: Required: Distinguish between the 2 types of Non-current assets, giving definitions recognition criteria and an explanation of the accounting treatment of both in the financial statements (30 Marks) Question 2: Omega Ltd question The following items of property plant and equipment were included in the records of Omega Ltd 1" February 2020: Accumulated Carrying Depreciation amount Land and Buildings Plant and Machinery Fixtures and fitting Motor and Vehicles Cost 468,000 352,000 175,000 120,000 198,400 68,700 82,000 468,000 153,600 106,300 38,000 During the year ended 31" January 2021 the following occurred: - 1. The charge depreciation on buildings at 2% per annum. Buildings represent 348,000 of the amount at Feb 2020. The buildings were bought new on 1" Feb 2020 2. An item of plant costing 88,000 on 1 July 2018 is now recognised as having a useful life of only five years in total. 3. New plant was acquired for 100,000 on 15 August 2020 and the company received a government grant of 20,000 towards the cost. The company uses the deferred credit method in accounting for government grants. 4. On 30 September 2020 a vehicle which was originally purchased for 19,000 during the year ended 31 January 2019 was traded in at a value of 13,000 against a new model costing 28,000. Assament brief: 2 of 3 International Accounting Standard (IAS) 16 Property Plant & Equipment and IAS 38 Intangible Assets both deal with Non-Current Assets in the Financial Statements, Question 1: Required: Distinguish between the 2 types of Non-current assets, giving definitions recognition criteria and an explanation of the accounting treatment of both in the financial statements, (30 Marks) Question 2: Omega Ltd question The following items of property plant and equipment were included in the records of Omega Ltd 1" February 2020: Accumulated Carrying Depreciation amount Land and Buildings Plant and Machinery Fixtures and fitting Motor and Vehicles Cost 468,000 352,000 175,000 120,000 198,400 68,700 82,000 468,000 153,600 106,300 38,000 During the year ended 31" January 2021 the following occurred: - 1. The charge depreciation on buildings at 2% per annum. Buildings represent 348,000 of the amount at Feb 2020. The buildings were bought new on 1"Feb 2020 2. An item of plant costing 88,000 on 1 July 2018 is now recognised as having a useful life of only five years in total. 3. New plant was acquired for 100,000 on 15 August 2020 and the company received a government grant of 20,000 towards the cost. The company uses the deferred credit method in accounting for government grants. 4. On 30 September 2020 a vehicle which was originally purchased for 19,000 during the year ended 31 January 2019 was traded in at a value of 13,000 against a new model costing 28,000