IAS 36: IMPAIRMENT OF ASSETS Question Nne.
Zeltec PLC (Zeltec) has 800 hectares of agricultural land amongst its fixed assets at cost of 4,400,000 as at 30 June 2005. The
required rate of return is 7%.
Due to the state of the agricultural sector the directors with to check whether the value of the land has been impaired. The land
has been rented out at an annual rent of 400 per hectare with five yearly rental reviews.
The rent recently has been renegotiated at an annual rent of 350 per hectare for the five years commencing 1 July 2005. Values
recently estimate that the land would fetch 4,000 per hectare on a sale at 1 July 2005.
Required:
Advise the directors if an impairment has occurred and, if so, provide the account entry required to reflect the impairment in the
accounts for the year to 30 June 2005.
Hint: Land is assumed to have an indefinite life. The rental income should also be indefinite.

Do savings and loan associations offer checking accounts?

Jade international is a highly diversified global firm with headquarters in new jersey. it manufactures a variety of products ranging from home security systems to automotive components. jade's 100,000 employees work at facilities located in more than 60 countries around the world. jade frequently sends american managers overseas to manage the firm's foreign facilities. the hr department is considering the idea of redesigning jade's expatriate support services program.which of the following, if true, best supports jade's decision to provide assistance to trailing spouses in finding jobs overseas? a) jade puts great emphasis on promoting the role of women in global management.b) the majority of jade's expatriate managers have long-term international experience.c) jade has lost a significant chunk of its global cadre in the recent past owing to its failure to offer feasible options to address the dual-career couples dilemma.d) female managers at jade have reported discriminatory treatment while on overseas assignments.

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu