Finance and Accounting for ABC Complete Kitchen Inc. Essay example

ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. This Subtopic also includes guidance on the impairment or disposal of long-lived assets. ASC 360-10 notes that long-lived tangible assets include land and land improvements, buildings, machinery and equipment, and furniture and fixtures.

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.

A balance sheet gives an overall picture of a company's financial situation by showing the total assets of a business, including liabilities plus equity. Current assets can include cash, accounts receivable, inventory and prepayments for insurance. The balance sheet is used by investors to get an idea of what the shareholders have invested, including

The value of fixed assets typically decreases over time. The amount of the decrease each year is accounted for and is called depreciation. Depreciation for the year is expensed on the income statement and added to the accumulated depreciation account on the balance sheet. So the value of the fixed assets on the balance sheet is reduced by the accumulated depreciation.

| Textbook pages 11-12. Assets = $12,000 + $50,000 = $62,000. Cash and inventory are examples.

The company also provides the following disclosure relating to the useful lives of its depreciable assets

Ending inventory amount is shown as an asset on the balance sheet, which happens to be true for all three inventory valuation methods.

Intangible assets are one of the most significant items in Myers financial statement. It consists of goodwill, brand names and trademarks, software and leases. AASB 136 Impairment of Assets requires Goodwill and some of the brand names that are indefinite useful life to test for the impairment. In Myer, there is no impairment loss. Furthermore, the accumulated amortisations of the other intangible assets are shown in the table X have a total value of $73585 thousand. According to AASB 117 Leases, the total rentals leases over the leases term are being expensed on a straight-line basis. In contrast, Myer’s competitor David Jones has only two intangible assets goodwill and software. The accumulated amortisation for software is $28808 thousand which is shown in the table X and it is the total value of accumulated amortisation.

The current assets are those which are readily convertible into cash and cash equivalents due to their highly liquid nature and also form part of working capital of the company’s operations. However, the long term assets in contrast are not liquid because since they have a useful life of more than a year and hence their full value cannot be easily realized within

a.) General Mills makes money through producing various food products and distributing them all over the world.

Property Plant and Equipment / Physical Long Term Assets: What accounts are included on the company’s Balance Sheet for long term physical assets (i.e. land, equipment, etc.)? Describe each account and the dollar value of each account. How much is Accumulated Depreciation? What depreciation method does the

Goodwill is a long-term asset categorized as an intangible asset. The amount of goodwill is the cost to purchase the business minus the

The company classifies its assets in a somewhat unusual way. The current assets are broken down well, including separate line items for billed and unbilled accounts receivable. However, there is no subtotal for long-term assets, which is unusual. The line items outside of current assets are as one would expect for long-term assets: property and equipment (net), capitalized software (net), goodwill, intangible assets (net), deferred contract costs, deferred income taxes, deferred compensation plan assets and other.

Identifiable intangible assets with finite lives are carried at cost less accumulated amortization and adjusted for

• Know the major headings under which the various assets and liabilities can be shown.