Impairment of Assets A. The purpose of this project is to provide an understanding on the process of impairment of assets and determining how it affects the financial statement and its users. B. The main purpose of standard IAS 36 is to ensure that the assets reported of Balance Sheet are recorded at no more than its recoverable amount. An asset or cash-generating unit will be considered impaired if the carrying amount is greater than the value of the sale of the asset or amount that
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Summary This report throws light on the complete analysis of Aurora Energy’s financial structure for the period 1st July 2011 to 30th June 2012. A complete picture of the equity structure, debt structure, external financing, key fixed assets, intangible assets, company’s policy of recognizing impairment losses and gains along with company’s financial operations have been explained in details. Aurora Energy is fully owned by Tasmania government and generates, distributes and retails electricity
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accounting. I will also discuss calculating assets and shareholders equity. Apple is a world-renowned company and climbed to the top through the use of responsible accounting. Following 2005, Apple has only gone up in terms of assets and shareholder equity, and continue climbing even higher to this day. Assets for Apple in 2005 were recorded as being 11,551 and were recorded in 2014 as being 231,839 (Apple, 1). Apple likely calculated the current assets by combining the value of cash and
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a) They are the leading producer of packaged consumer foods and operate exclusively in the consumer foods industry. According to the financial statements, GM makes most of the money from sales. They have 3 segments US Retail, Bakeries and Food Services and International. b) The following are the financial statements that are commonly prepared for external reporting purposes. 1) Balance sheet 2) Income Statement 3) Statement of cash flow 4) Statement of Stockholder’s equity GM
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business combination is: A transaction or event in which an acquirer obtains control of one or more businesses (e.g. acquisition of shares or net assets, mergers, reverse acquisitions). A business combination must be accounted for by applying the acquisition method. In general, after the date of a business combination an acquirer measures and accounts for assets acquired, liabilities assumed or incurred and equity instruments issued in accordance with the
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brand (inventory) and their investments (goodwill/intangible assets), and research and development of new products B. What financial statements are commonly prepared for external reporting purposes? What tittles does General Mills give these statements? What does “consolidated” mean? * Balance Sheet and Statement of Earnings * Consolidated Statement of Earnings and Consolidated Balance Sheets * Consolidated – combining assets, equity, liabilities and operating accounts of a parent
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two proper accounting treatments regarding tangible assets and goodwill as well as the effects of these treatments. Impairment exists when the carrying amount of an asset exceeds its fair value and the impairment loss is the difference between the carrying value and fair value of that asset. The impairment test rules applied to impairment of property, plant, and equipment are different from those used in measuring goodwill. For tangible assets to be held and used, a recoverability test is performed
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company’s financial condition as of a specific point in time based on generally accepted accounting principles. These data are classified in three categories—assets, liabilities, and owners’ equity. The basic balance sheet is: Assets = Liabilities + Owners’ Equity or Resources = Creditors’ and Owners’ Claims on Resources tC Assets are probable, measurable, future economic benefits (things of value that the company owns or controls) to which the business holds the rights, which have been
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of the PepsiCo net revenue only $10,230 (in millions) is from the beverage division, which results in The Coca-Cola Company dominating beverage sales. c. Which company has the greater percentage increase in total assets from 2006 to 2007? For 2006 Coca-Cola had $29,963 in total assets and $43,269 in 2007. This shows an increase of $13,306. The percentage of increase is
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Accounting requires that the most accurate numbers be recorded as they relate to specific assets and liability accounts. In order to ensure that those items have been properly identified and aligned with the proper costs, various processes are used based on the type of item that needs to be recorded. Four processes that are utilized to record the costs associated with plant assets, natural resources and intangible assets include valuation, depreciation, amortization and depletion. The process of
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