Depreciation of fixed assets (15 marks) Alpha LLC is part of an international holding and prepares its financial statements in accordance with IFRS and in accordance with the accounting policies adopted by the foreign parent company for all the companies within the Group. On July 1, 20X3. Alpha acquired computer equipment for the total amount of UZS 50,000,000, vehicles for the total amount of UZS 300,000,000 and plant machinery for the total amount of UZS 1,300,000,000. For IFRS purposes in accordance with the accounting policy the company uses reducing balance method of depreciation for computer equipment at the rate of 30% p.a., straight line method for vehicles with the established useful life of 5 years and machine hours method for plant machinery which has total capacity of 10,000 hours. Abovementioned PPE items are expected to have the following residual values: Computer equipment UZS 5,000,000 Vehicles - UZS 40,000,000 Plant machinery - UZS 100,000,000 Required: You need to prepare a disclosure note schedule for the above PPE showing their book values, accumulated depreciation, depreciation charges and carrying amounts along with journal entries as of and for the years ended December 31,204 and 203 considering the following: - Plant machinery has worked 1,000 hours in 203 and 3,000 hours in 204; - Calculate the amounts of depreciation expense using each method; - Provide journal entries as appropriate. Depreciation of fixed assets (15 marks) Alpha LLC is part of an international holding and prepares its financial statements in accordance with IFRS and in accordance with the accounting policies adopted by the foreign parent company for all the companies within the Group. On July 1, 20X3. Alpha acquired computer equipment for the total amount of UZS 50,000,000, vehicles for the total amount of UZS 300,000,000 and plant machinery for the total amount of UZS 1,300,000,000. For IFRS purposes in accordance with the accounting policy the company uses reducing balance method of depreciation for computer equipment at the rate of 30% p.a., straight line method for vehicles with the established useful life of 5 years and machine hours method for plant machinery which has total capacity of 10,000 hours. Abovementioned PPE items are expected to have the following residual values: Computer equipment UZS 5,000,000 Vehicles - UZS 40,000,000 Plant machinery - UZS 100,000,000 Required: You need to prepare a disclosure note schedule for the above PPE showing their book values, accumulated depreciation, depreciation charges and carrying amounts along with journal entries as of and for the years ended December 31,204 and 203 considering the following: - Plant machinery has worked 1,000 hours in 203 and 3,000 hours in 204; - Calculate the amounts of depreciation expense using each method; - Provide journal entries as appropriate
