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MEDLink System Inc. ( M E D L i n k ) i s a privately held company specializing i n customized medical software t
MEDLink System Inc. a privately held company specializing customized medical software manage patient records for the medical offices, medical laboratories and hospitals across Canada. MEDLink users are healthcare administrators and professionals technicians, nurses and doctors across Canada.
The company has been operating from its headquarters the Lower
Mainland since Jan The company fiscal year end
December For the first time since its inception, external auditor had been appointed conduct audit prior issuing the financial statements planned for April
Server Farm and network assets
When the servers and network assets were initially purchased the company had arrange for long distance transportation from Toronto, costing $ Insurance while transit was $ The company also had pay technical engineers install and setup the equipment, costing $ Start and testing costs were another $ Total expenditure $ was fully expensed
For the year ended Dec Meg gathered the following information the server farm assets. Despite evidence from internal reporting shows performance below expectations, impairment was recognized.
Picture is information
Required:
Regarding server farm, provide correct calculations and journal entries for each transaction in compliance with IFRS. Include
your assumptions in the calculationsjournal entries.
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