Face-to-face hand-in #3
Due: Session 3
Topic: Capital Assets

In this face-to-face we will consider the implication of information about capital assets on the financial statements. Parts 1 and 3 will use the financial statements of Nestlé Group, which are posted in the Face-to-Face tab on the Blackboard content page.

The questions, in three parts, are on the next pages.

Submission Requirements * You must hand in your face-to-face submissions at the beginning of the class. TAs will pick up the submissions within five to ten minutes of the start of class. If you arrive after the TA has picked up the assignment, or after 10 minutes of the start of class (whichever occurs first), you won’t be able to hand it in and you will receive a zero for that assignment. * You have to hand in your face-to-face assignment in the section you’re registered in. * Face-to-face assignments must be typed. * All parts must be completed with demonstrated effort in order to be graded “complete”

Face-to-face hand-in #3
Capital Assets
Due: Session 3 PART 1 For this part of the Face-to-Face you’ll use Nestlé Group’s 2012 consolidated financial statements and the 2012 Annual Report. You’ll find these documents on the Blackboard content page under the Face-to-Face tab. 1. How much depreciation expense did Nestlé record in 2012? $2,711M CHF

2. What amount of property, plant, and equipment did Nestlé report on its December 31, 2012 balance sheet? What does the amount represent? 26,903M CHF. This is the net amount (gross less accumulated depreciation) 3. What useful life does Nestlé estimate for its machinery and equipment? 10-25 years

4. What residual value does Nestlé give to all its assets except for head offices? Zero for all asset types except head offices

5. What basis of valuation does Nestlé use for its property, plant, and