Djakarta Financial Statements

vi) Goodwill- The beginning balance for Goodwill was determined by finding the difference between Total Assets and Total Liabilities at the beginning . Goodwill accounts for all the intangible assets that were transferred from the old company to the new company, including brand name, as well as a premium paid for the company. Goodwill was not amortized in this model.

Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 40 years for buildings, 3 to 10 years for machinery and equipment, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are amortized using the straight-line method over 3 years. Estimated useful lives are periodically reviewed and, where appropriate, changes are made prospectively. The carrying value of property, plant, and equipment is reviewed when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Any

Executive Summary Business and Industry Analysis Competitive Advantages Five Forces Model Industry Competitive Analysis Accounting Analysis Key Accounting Policies Degree of Accounting Flexibility Evaluation of Accounting Strategy Accounting Quality of Disclosure Red Flags Quantitative Analysis Ratio Analysis Liquidity Profitability Capital Structure Forecasting Balance Sheet Income Statement Statement of Cash Flows Forecast Summary Valuation Analysis Method of Comparables

The amounts of assets and liabilities under the SFAB 143 are recorded each year as accretion and depreciation expenses the capitalized asset retirement would be allocated in a rational and systematic manner while the depreciation expense would be recorded over the estimated useful life of the asset (Guinn, Schroeder, and Sevi, 2005)Depreciation would be calculated through increasing the asset base by dividing using the assets useful life which is adopted by Statements of the Financial Accounting Standards (SFAS) 143 .The accretion expense is calculated through multiplying the balance of recorded liability while using the company's credit-adjusted discount rate that occurs each year that is also referred to as amortization of the present value discount that is associated with the asset retirement obligation.

The financial statements measure the liquidity and the strength of a business. On the balance sheet; offsets calculate the real value of accounts receivables and fixed assets. Uncollectible accounts receivables and depreciation reflect the offsets reported on financial statements. In accordance with generally accepted accounting principles (GAAP); two methods compute the uncollectible accounts receivable expense. Just like uncollectible accounts offset the value of accounts receivables; so do depreciation expenses counteract the value of fixed assets. Also called contra accounts, the journal entries accumulate and are then recorded on the balance sheet.

Total profit and cash flow are expected to be produce by certain asset which is occa-sionally contrasted with book value. If the book value is more than cash flow of the asset, the remaining amount should be written off and the value should be rejected from the balance sheet (Dauangploy,O.,et. al.,2005). If the carrying amount is more than recoverable amount, it can indicate the loss of impairment. Then the recover-able amounts need to be written down. There are two different models to recognise impairment, cost model and revaluation model. Impairment loss in cost model can be recognised directly in profit or loss. In revaluation model asset is measured in its fair value and impairment loss is recognised as descending revaluation.

The concept and practice of depreciation and depletion play an integral part in a company 's cash flow and profit or loss statements. Depreciation, according to investopedia is a method of allocating the cost of a tangible asset over its useful life. Depletion is very similar to depreciation with very subtle differences, the first one being what is depreciated verses depleted. All assets (except land) are depreciated but the assets with natural resources are depleted. The methods on how depreciation and depletion are calculated vary as well. Each will be visited in this essay.

These assets are used for producing the services or goods, administrative aims or for the rental objectives and offer benefit for the time period of more than one financial period. For the non-current assets there can be two modes i.e. cost or revaluation. In cost model the asset is mentioned at cost by deducting the amount of accumulated depreciation while in revelation model the asset is mentioned on fair price. Philips uses the cost model where the depreciation is calculated by straight line method (Philips.com,

From 2003-2012 the industry value added to the GDP and the Industry Sales Data have consistently gone up. In 2007-2008, both these factors took a slight dive as the country was going through a recession. In 2012, the industry sales in the Food and Beverage industry were at 530 million dollars and climbing. The industry value added to the GDP is at a slight decline with 141 million in 2011 and 130 million in 2012. Although the Food and Beverage Industry is currently declining, for many previous years, it has successfully been inclining.

Companies are required to submit financial statements at least yearly. These statements are used by number of groups and individuals ranging from internal managers, shareholders, prospective investors, suppliers, financial institutions and even the government. Each has it own reason for reviewing the statements, but all are able to get their desired information from the financial statements and reports. The purpose of financial statements is to offer and support information about the company’s financial performance, position and any changes during a specified time frame. The three main statements are the income statement, the balance sheet and the statement of cash flow, the 10K is also included in the yearly submissions. Analyzing this information and including some general acceptable accounting ratios can provide the user more awareness of the company’s financial health. This paper will look at the financial health of the Haemonetics Corporation by reviewing the horizontal and vertical analysis of the income statement, balance sheet and selected ratios.

The ACC method was advocated by Edwards and Bell, they adopt a physical capital maintenance approach to income recognition. The valuations in this approach should based on replacement costs. Moreover, the operating income can be regarded as realized revenues less the replacement cost of the assets (Mohiuddin,2014).

Property, Plant & Equipment. The following determination of the acquisition value or of the income of the sale of asset purchased or sold before the record date of balance sheet valuation that’s give proof of an impairment in price as at the record date.

Under its principle to evaluate all elements of economic resources and their usage and expenditure and revenue reflected in financial statements with their original cost, regardless of all the volatility in the economic value as a result of ongoing changes in the purchasing power of money, the most influential of this principle is the long term assets (buildings, machines, machinery, transport equipment, furniture, etc.) are corroborated in records, and financial statements at cost, regardless of the market price to be Straightened by calculating the so-called consumption account originally as a aims to distribute PCs burden the historical cost of the asset.

CONTENT CHAPTER PAGE 1.0 INTRODUCTION 3 1.1 Company Profile 3 1.1.1 Hup Seng Industries Berhad 3 1.1.2 Hwa Tai Industries Berhad 3 1.2 Company Financial Position and Income Statement 4 1.2.1 Hup Seng Industries Berhad 4 1.2.2 Hwa Tai Industries Berhad 6 2.0 RATIOS ANALYSIS 8 2.1 Liquidity Ratios 8 2.1.1 Current Ratio 8 2.1.2 Quick (Acid-Test) Ratio 8 2.2 Activity Ratios 9 2.2.1 Inventory Turnover 9 2.2.2 Average Collection Period 9 2.2.3 Total Assets Turnover 10 2.3 Debt Ratios 11 2.3.1 Debt Ratio 11 2.3.2 Times Interest Earned Ratio 11 2.4 Profitability Ratios 12 2.4.1 Gross Profit

INDIVIDUAL ASSIGNMENT FIN202 | | TOPIC: Financial statement analysis and stock valuationLECTURE: PHAM LIEN HASTUDENT: HOANG MY LINH ROLL NUMBER: FB00073 CLASS: FB0609 - FPT University | | Contents I. INTRODUCTION 2 1. Main production 2 2. Segment market 2 3. Vision 2 4.