stated at cost less accumulated depreciation and impairment (if any). But‚ In this report there are not any impairments.Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred‚ cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.Depreciation is provided on plant and equipment. Depreciation is calculated on a straight-line
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1. What managerial issues (including profitability‚ market and competition‚ economy‚ control and partnership with JTL) should David Grant consider before starting the Caribbean Internet Café (CIC)? Take a couple of pages to discuss these issues since understanding the numbers is only part of the decision making process. The managerial issues that David Grant should be considering before going into business for himself in Kingston are abundant every aspect of the business should be scrutinized before
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BankChapter 13 - Property‚ Plant‚ and Equipment: Depreciation and Depletion Chapter 13 Property‚ Plant‚ and Equipment: Depreciation and Depletion True / False Questions 1. The auditors’ approach to the audit of property‚ plant‚ and equipment largely results from the fact that relatively few transactions occur. True False 2. A major control procedure related to plant and equipment is a budget for depreciation. True False 3. Evidence of continued ownership of property is obtained by vouching
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Useful life = ($35‚000‚000 ̶ $5‚000‚000) / 5 years = $6‚000‚000 per year b. Depreciation per unit = (Cost – Residual value) / Useful life in units = ($35‚000‚000 ̶ $5‚000‚000) / 6‚000‚000 miles = $5 per mile Units-of-production = Depreciation per unit × Current year usage = $5 per mile × 1‚000‚000 miles = $5‚000‚000 for year 1 c. Double-declining-balance = (Cost – Accumulated depreciation) × 2 × (1 / Useful life) = ($35‚000‚000 ̶ $0) × 2 × (1/ 5 years) = $14‚000‚000
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Annual Report 2011‚ pp.2) Question 3: Depreciation method applied The number of note deals with Statement of Significant Accounting Policies is Note 1. The specific depreciation method applied is Straight-line Method. Leasehold improvements are calculated at the shorter of the depreciation period or the term of the lease. (Nick Scali Limited‚ Annual Report 2011‚ pp.22) Question 4: Depreciation expense and accumulated depreciation Total depreciation expense for the year ending 30 June 2011
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full year ’s depreciation expense is to be recorded in 2013. The equipment was used 20 000 hours during 2013 and 24 000 hours during 2014. The number of expected hours over five years is 100 000. Clear Window is comparing the straight-line and reducing-balance depreciation methods. Of these two methods‚ which method creates the larger expense and larger tax savings in 2013? a. Straight-line depreciation creates the larger expense‚ while reducing-balance depreciation creates the
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land‚ plant and equipment and natural resources. An intangible asset has no physical substance. These will include good will‚ patent rights and copyrights. Land is not normally amortized because its useful life is assumed to be indefinitely long. Depreciation is process of converting the original cost of plant and equipment assets to expense. Depletion on the other hand is the process of converting the cost of the natural resource assets to expense. If the intangible assets are converted to expense
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Inventory valuation methods: 5. Depreciation methods: 6. Depreciation computations: 7. Depreciation computations: ACC205_Week_Three_Exercise_Assignment: Inventory 1. Specific identification method. 2. Inventory valuation methods: basic computations. 3. 3. 3. Perpetual inventory system: journal entries 4. 4. 4. Inventory valuation methods: computations and concepts 5. 5. 5. Depreciation methods. 6. 6. 6. Depreciation computations. 7. 7. 7. Depreciation computations: change in estimate.
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(Rs in Crores) PARTICULARS F.Y(2012-13) CY(2011-12) Revenue from operations 2959.03 2554.44 Profit before finance cost depreciation & taxation 238.26 196.74 Finance cost 109.67 93.82 Depreciation & amortization expenses 56.51 47.31 Profit before tax(PBT) 72.08 55.61 Tax expense 2.83 3.63 Profit after taxation(PAT) 69.25 51.98 Interim equity dividend paid including tax 15.28 Nil Proposed dividend 5.13
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Harnischfeger altered their depreciation from a direct method to the straight-line method for financial reporting purposes. They also included the products purchased from Kobe Steel‚ LTD and sold by them in their net sales instead of stating only the gross margin per unit. An adjustment of the residual values on certain machinery and equipment was made and they also included the financial statements of some foreign subsidiaries. 2. What is the effect of the depreciation accounting method change on
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