Djakarta Financial Statements

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This report has been produced to compare the financial statement of two companies in the food and beverages industry. Mayora and Delta Djakarta are both well-known companies. These companies are listed in the Indonesian Stock Exchange (IDX) with their respective codes (MYOR) and (DLTA). As the both of them are rivals in the industry, this report will provide myriad of detailed analysis to compare and contrast the financial statement of the companies. And take into account the liquidity or ability of a firm to overcome its current obligations, and its durability which is the company’s ability to repay its debts and other obligations. The Food and Beverages sector is one of the most important industries in the world economy. The food and beverage…show more content…
Firstly, with regards to current assets (cash and other assets that are expected to be converted to cash within a year), both the companies amortise their loans and receivables at cost using effective interest method less impairment. Secondly, the value of their inventories in the consolidated financial statement are stated at cost or net realizable value, which is lower. The method used to weigh the value of these inventories at a particular time is determined by the weighted average method. Net realizable value represents the estimate selling price for the inventories less all estimated costs of completion and costs necessary to make a sale. Similarly, prepaid expenses are amortised over their beneficial periods using the straight-line method. Next, the non-current assets (company’s long-term investments where the full value will not be realized within the accounting year) of the companies include: Account receivables which are impaired at each reporting date when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset. And are derecognized when the right to receive the cashflow have expired or the group has transferred its rights to receive cash…show more content…
All PPE are stated at cost, excluding day to day services, less accumulated depreciation and amortization and any impairment in value. While land is sated at cost and is not depreciated. Necessary depreciation is computed on straight line basis over the property, plant and equipment’s useful lives. The assets depreciation, residual value, useful life and all other information which can cause the value to vary are reviewed in the year end. When assets are retired or otherwise disposed, the carrying values of those assets are removed and any gain or loss on disposal is reflected as profit or loss. Construction in progress is stated at cost and will be reclassified to the respective property, plant and equipment account when available for its intended use. The other cost incurred to obtain the PPE to function are capitalized if and only if future economic benefits will flow into the entity and can be measured reliably otherwise, the cost are expensed. The other costs may include: repairmen and replacement among the others. The PPE owned by the companies will be impaired by the group at each annual reporting period only if there is an indication of any necessary impairment. Furthermore, financial liabilities are classified as “at amortize cost”. They are derecognized when the obligation under the contract is discharged, cancelled or has expired. Finally, both the company’s
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