...different companies value similar assets very differently, this essay will elaborate this phenomena in details through referring to some companies. Tangible non-current assets like property, plant and equipment are initially recorded at acquisition cost, it means all costs directly attribute to bringing the asset into working condition, and they have a fundamental influence on the amount of depreciation as a depreciation base. Generally speaking, in the case of the serve life of tangible non-current assets is fixed, the depreciation will be higher if the there is a higher acquisition cost. Further more, the net residual value can also influence the depreciation, if the tangible non-current assets have higher net residual value, correspondingly, the depreciation in unite time or unit labour force will be lower, because net residual value is an estimator at the beginning about the whole serve life has completed in the future, so the real amount can only be confirmed when it really happens, hence it is subjective to some extent and it will lead to companies value similar assets very differently. There are also many other factors which can influence the value of tangible non-current assets. Through referring to the example in Enigma, on the one hand, the company revalued their property which leads to an increase of its value, the increased value should be credited under other comprehensive income as gains on property revaluation in the account, so the revaluation can influence...
Words: 653 - Pages: 3
...“Valuing tangible non-current assets is subjective and complex and can therefore result in different companies valuing similar assets very differently” Financial reporting attempts to measure the worth of assets, a concept that is inherently subjective and arbitrary. We can never know the true value of an asset, and rather than being an objective truth, valuations are always biased. Financial reporting is used for different purposes by different users and so each different way might be appropriate in different circumstances and values are affected by the purpose of measurement. Property, plant and equipment are the main non-current assets that a company holds. Similar assets can be valued differently in different companies due to several different factors which I will discuss in this essay. Tangible non-current assets are usually valued by using the historical cost, which is the initial cost of acquiring the asset to the company. The IFRS states that the historical cost of an item not only includes the price paid for it, but also “any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.” This includes transportation and labour costs, and the cost of site preparation. Different companies may have different views on whether costs involved in bringing the asset into use should be counted as part of the asset or an expense, and often small costs that should be capitalised...
Words: 1373 - Pages: 6
...Introduction: A UK based company J Sainsbury plc a firm which is into grocery, retailing and financial services business. The research is mainly to do the financial assessment of Sainsbury and the performance in compared to its industry competitors. Looking at the last 2 years report the company is now recovering from its passed performances. In recent years there has been many changes in the management and the board which has adopted many different approaches like expanding on retail, renovating, re-engineering of supply chain, brand repositioning, quality improvement, coat reduction and also in IT devision, which gave a lot of sales and profit to the company. If we look in the past Sainsbury has less flow of cash flow and also in net profit. If we compare them with its competitor Tesco, it shows that Tesco is the market leader, and has a high profit margin (DataMonitor, 2010) 2. Accounting Policies: Accounting policies are reliable and give the facts of the business which are crucial to make investment decisions for the business. If the company's profits are understated or overstated, the decisions taken by the investors appear to be false and financial resources get misallocated (Frank Wood, 2008). Basis of preparation: The financial statements are based on historical cost. The financial statements is in conventionality with IFRSs requires the use of assumptions, estimates and judgements that manipulate the amounts of assets and liabilities on the date of the financial...
Words: 2443 - Pages: 10
...Research Method (Sarah) Introduction The research method is outlined by an alternative study of the plan. This study will look at three main aspects: the technical specifications of the subject matter, the personal account, and the literary interpretation. The architectural plan is traditionally represented without the human figure, or as Robin Evans has pointed out, drawn as “amoebic” figures. Architectural drawings are often studied with a technical slant, although architecture has long been considered as “social artifact”1 . Thus literature, accompanied by photographic illustrations, is emergent as a device to test architectural apparatus, particularly in the domestic realm where aspects of dwelling and occupancy are not as closely recorded in formal documents as its physical history (e.g. building completion, demolition). This enables us to investigate the relationship between the building plan and its occupants, to understand the architecture as a dwelling. Technical specifications The Pearl Bank Apartments, built in 1972, was built to offer a transcendent mode of living that differentiated the uppermiddle class. More than its unprecedented stature that boasted an elite model of highdensity living, an interior component was specifically marketed as a key selling point — the living room. In the original Pearl Bank Apartments sales brochure, the text and images boast a large and brightlylit living room attached to a doublevolume ...
Words: 4198 - Pages: 17
...Chapter 09 Property Acquisition and Cost Recovery True / False Questions 1. | Like financial accounting, most business property must be capitalized for tax purposes. True False | 2. | Tax cost recovery methods include depreciation, amortization, and depletion. True False | 3. | If a business mistakenly claims too little depreciation, the business must only reduce the asset's basis by the depreciation actually taken rather than the amount of the allowable depreciation. True False | 4. | An asset's capitalized cost basis includes only the actual purchase price; whereas the other expenses associated with the asset are immediately expensed. True False | 5. | The basis for a personal use asset converted to business use is the lesser of the asset's cost basis or fair market value on the date of the transfer or conversion. True False | 6. | Depreciation is currently computed under the Modified Accelerated Cost Recovery System (MACRS). True False | 7. | The 200 percent or double declining balance method is allowable for five and seven year property. True False | 8. | Taxpayers may use historical data to determine the recovery period for tax depreciation. True False | 9. | Taxpayers use the half-year convention for all assets. True False | 10. | If a taxpayer places only one asset (a building) in service during the fourth quarter of the year, the mid-quarter...
Words: 18014 - Pages: 73
...This is a 2-hour exam; one essay and 20/25 questions CHECKLIST Do the questions first; then spend the rest of the time on the essay. Things grader looks for: Need a nice IRAC; issue spotting; I. Land Acquisition – TWO or more people fighting over property A. Adverse possession: To constitute adverse possession, there must be actual possession which is uninterrupted, open and notorious, hostile and exclusive, and under a claim of right made in good faith for the statutory period. Possession for a statutory period of time can ripen into title. 1. Elements: COAH a. Actual Possession: Actual means that the possession must be such that the community would reasonably regard the adverse possessor as the owner; the possessor must show an actual entry that gives exclusive possession of the land and does not have the owner’s permission to be there. The possessor’s subjective state of mind is irrelevant. b. Uninterrupted: Continuity of possession may be established although the land is used regularly for only a certain period each year. It is not necessary that the occupant should be actually upon the premises continually. If the land is occupied during the period of time during the year it is capable of use, there is sufficient continuity. Thus, summer occupancy only of a summer beach home does not destroy the continuity of possession required. c. Open and Notorious: The acts of the adverse possessor are...
Words: 13742 - Pages: 55
...Property yields as tools for valuation and analysis Rosane Hungria-Garcia in collaboration with Hans Lind Björn Karlsson This report has been sponsored by the Real Estate Academy at the Division of Building and Real Estate Economics. Stockholm 2004 ______________________________________________________ Report No. 52 Building & Real Estate Economics Department of Infrastructure KTH Summary This project was started in order to get an overview of conceptual problems, measurement problems, theories of determinants of yields, the use of yields in different contexts and how the actors on the Swedish market looked upon yields. Important issues discussed in the report is the need for: - Conceptual clarity: A number of different yield terms exist on the market and it is very important to be clear about how the specific terms are defined. - Operational clarity: There are measurement problems both concerning rental incomes, operating and maintenance costs and property values. This means that reported yields can be “manipulated” by choosing suitable operationalisations and pushing estimations of uncertain factors in directions that are favourable to the actor in question. - Specify the purpose for which the yield should be used. The most important distinction is between using yields/income returns for valuation purposes and using yields as benchmarks or bubble indicators. In the first case various types of normalization of the net operating income can be rational. In the second...
Words: 19982 - Pages: 80
...WILEY CPA EXAM REVIEW Financial Accounting and Reporting F O U R T H • concepts • problem-solving E D I T I O N • terms • rules Less Antman and criteria WILEY CPA EXAM REVIEW Financial Accounting and Reporting F O U R T H • concepts • problem-solving E D I T I O N • terms • rules Less Antman and criteria Copyright © 2006, by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-750-4470, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://wiley.com/go/permission. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of...
Words: 18827 - Pages: 76
...ACCT504 Week 1 Objectives (JAN15) 1 of 2 https://devry.equella.ecollege.com/file/c3a70b64-5599-41cb-be31-a270... Print Given an annual report, the student should be able to read, understand, analyze, and explain a A company’s Balance Sheet to other decision makers and use the knowledge and skills to make business decisions. Key Concepts Understand the environment of financial reporting in the United States and explain the importance of generally accepted accounting principles. Explain the meaning and purpose of a balance sheet and the items that appear in the balance sheet. Determine the interrelationship among the basic financial statements. Analyze the relationship between certain items in the balance sheet and the income statement with the help of ratio analysis. Evaluate the way that different assets, liabilities, and stockholders' equity items are presented in a balance sheet. Given an annual report, the student should be able to read, understand, analyze, and explain a B company’s Income Statement to other decision makers and use the knowledge and skills to make business decisions. Key Concepts Explain the meaning and purpose of an income statement and the items that appear in the income statement. Determine the interrelationship among the basic financial statements. Analyze the relationship between certain items in the balance sheet and the income statement with the help of ratio analysis. Evaluate the way that different revenues, expenses...
Words: 125075 - Pages: 501
...CLASS 1.1 Important concepts Entities – tax versus legal • Tax entities o People, partnerships, joint venture, companies … are considered to be entities for the purposes of calculating income tax. • Legal entities o Companies, which have separate legal personalities, are legal entities. Income flows • Income should be considered as a cash flow stream, where timing is important. • The question is, when the income recognised as earned or deducted (because tax delayed is tax denied)? CLASS 1.2 Patterns of taxation Income tax • Income tax is a progressive system. • Income tax is mainly a rich person’s tax once franking credits are taken into account to produce an “effective tax rate”. • Wealthy people pay less tax overall by reducing their tax burden through using the lower rate paid on capital gains and other tax minimisation schemes. • Total tax as a percentage of GDP is lower in Australia compared to many other countries across the world. However, these results must be considered in light of the high level of income (where it may not be as much of a burden to pay high taxes where there is high income) and quality of public goods provided in counties such as Sweden (which has the highest total tax rate as a percentage of GDP). Justifications for taxation Why do we need taxes? • Public goods argument: the government can provide some benefits to society better than anyone else. Examples include defence, and law and order. • Market failure...
Words: 34901 - Pages: 140
...Wharton MBA • Class of 2015 Waiver Exam Guide Table of Contents Introduction .................................................................................................................................................3 Accounting (ACCT611) Sample Placement Exam..................................................................................................................5 Sample Waiver Exam–Part 1 .........................................................................................................18 Sample Waiver Exam–Part 2 .........................................................................................................31 Sample Placement Exam Answers .................................................................................................49 Sample Waiver Exam–Part 1 Answers ..........................................................................................56 Sample Waiver Exam–Part 2 Answers ..........................................................................................60 Corporate Finance (FNCE611/612) Placement/Waiver Exam–Part 1....................................................................................................65 Placement/Waiver Exam–Part 2....................................................................................................70 Placement/Waiver Exam–Part 1 Answers.....................................................................................76 Placement/Waiver Exam–Part 2...
Words: 38181 - Pages: 153
...SOLUTIONS MANUAL Frank Wood’s Business Accounting 1&2 ELEVENTH EDITION Frank Wood BSc(Econ), FCA and Alan Sangster BA, MSc, CertTESOL, CA ISBN 978-0-273-71824-6 © Pearson Education Limited 2008 Lecturers adopting the main text are permitted to download and photocopy this manual as required. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies around the world Visit us on the World Wide Web at www.pearsoned.co.uk Eleventh edition published in 2008 © Pearson Education Limited 2008 The rights of Frank Wood and Alan Sangster to be identified as authors of this Work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London ECIN 8TS. ISBN 978-0-273-71824-6 10 11 9 8 7 6 10 09 08 5 Printed in Great Britain 4 3 2 ...
Words: 62664 - Pages: 251
...INSIDE Wipro in Brief Customer Focus Financial Highlights Chairman's Letter to the Stakeholders CEO's Letter to the Stakeholders CFO's Letter to the Stakeholders Board of Directors Sustainability Highlights 2012-13 Management Discussion & Analysis Directors Report Corporate Governance Report Business Responsibility Report Standalone Financial Statements Consolidated Financial Statements Consolidated Financial Statements under IFRS Glossary 2 4 8 10 12 14 16 22 24 41 55 85 106 147 183 231 This Annual Report is printed on 100% recycled paper as certified by the UK-based National Association of Paper Merchants (NAPM) and France - based Association des Producteurs et des Utilisateurs des papiers et cartons Recycles (APUR). Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration...
Words: 122508 - Pages: 491
...FAR EASTERN UNIVERSITY INSTITUTE OF TOURISM AND HOTEL MANAGEMENT Super Dog’s Gym & Training Center ---------------------------------------------------------------------------- A Business Plan Presented to the Faculty of the Institute of Tourism and Hotel Management Far Eastern University Nicanor Reyes Street, Sampaloc, Manila ---------------------------------------------------------------------------- In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Tourism Management ---------------------------------------------------------------------------- BASAT, JOLINA BELLE C. HUANG, YA-HUI E. MATAYA, TRIZIAMAE D. PAREDES, CHIT JANSSEN A. TELAN, DERREN KRISTELLE J. October 2015 FAR EASTERN UNIVERSITY INSTITUTE OF TOURISM AND HOTEL MANAGEMENT APPROVAL SHEET In partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE TOURISM MANAGEMENT, this business plan entitled “Super Dog’s Gym and Training Center”, prepared and submitted by JOLINA BELLE C. BASAT, YA-HUI E. HUANG, TRIZIAMAE D. MATAYA, CHIT JANSSEN A. PAREDES, and DERREN KRISTELLE J. TELAN, is hereby recommended for submission to the Oral Presentation. _____________________________________________ Adviser Approved by the Research Committee at the Oral Examination conducted on October 4, 2015 with the grade of __________ %. THE RESEARCH PANEL COMMITTEE ______________________________ Chairman ______________________________ ...
Words: 13819 - Pages: 56
...NATIONAL INSTITUTE OF TECHNOLOGY SILCHAR Bachelor of Technology Programmes amï´>r¶ JH$s g§ñWmZ, m¡Úmo{ à VO o pñ Vw dZ m dY r V ‘ ñ Syllabi and Regulations for Undergraduate PROGRAMME OF STUDY (wef 2012 entry batch) Ma {gb Course Structure for B.Tech (4years, 8 Semester Course) Civil Engineering ( to be applicable from 2012 entry batch onwards) Course No CH-1101 /PH-1101 EE-1101 MA-1101 CE-1101 HS-1101 CH-1111 /PH-1111 ME-1111 Course Name Semester-1 Chemistry/Physics Basic Electrical Engineering Mathematics-I Engineering Graphics Communication Skills Chemistry/Physics Laboratory Workshop Physical Training-I NCC/NSO/NSS L 3 3 3 1 3 0 0 0 0 13 T 1 0 1 0 0 0 0 0 0 2 1 1 1 1 0 0 0 0 4 1 1 0 0 0 0 0 0 2 0 0 0 0 P 0 0 0 3 0 2 3 2 2 8 0 0 0 0 0 2 2 2 2 0 0 0 0 0 2 2 2 6 0 0 8 2 C 8 6 8 5 6 2 3 0 0 38 8 8 8 8 6 2 0 0 40 8 8 6 6 6 2 2 2 40 6 6 8 2 Course No EC-1101 CS-1101 MA-1102 ME-1101 PH-1101/ CH-1101 CS-1111 EE-1111 PH-1111/ CH-1111 Course Name Semester-2 Basic Electronics Introduction to Computing Mathematics-II Engineering Mechanics Physics/Chemistry Computing Laboratory Electrical Science Laboratory Physics/Chemistry Laboratory Physical Training –II NCC/NSO/NSS Semester-4 Structural Analysis-I Hydraulics Environmental Engg-I Structural Design-I Managerial Economics Engg. Geology Laboratory Hydraulics Laboratory Physical Training-IV NCC/NSO/NSS Semester-6 Structural Design-II Structural Analysis-III Foundation Engineering Transportation Engineering-II Hydrology &Flood...
Words: 126345 - Pages: 506