The Account Of Bhp Billiton And Telstra

On page 40, we are told that Whole Foods uses the straight line method for the depreciation of property and equipment, including depreciation of equipment over useful lives (3-15 years), amortization of leasehold improvements and real estate assets under capital leases, and depreciation of buildings (20-50 years). When assets are retired or disposed, costs and accumulated depreciation are removed from the balance sheet and gains or losses are then reflected in earnings. Net Cash Provided by Operating Activities 1150 Dollars (in millions) 1100 1088 1050 1009 1000 950 920 900 850 800 2014 2013 Year 3 2012 Kroger RATIO Current Ratio EQUATION RESULT 8,911 11,403 = 0.781 Return on Assets (30,556+29,281)/2 Return on Equity Return on Sales 1,728 ℎℎ ′

c. Depreciation is computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: Buildings and improvements (5 – 40 years); Store fixtures and equipment (3 – 15years), Leasehold improvements (Shorter of initial lease term or asset life); Capitalized software (3 – 7 years).

| In Year 1, depreciation is $5,000 plus 15% of the asset’s outlayFrom Year 2, depreciation is either * 30% of the asset’s book value; or * if the asset’s book value is less than $6,500, depreciation is the asset’s book value (i.e. asset is depreciated to zero once book value < $6,500)

f. The midpoint range for straight-line depreciation of transmission equipment is 22 years. The $771 million capitalized in the first quarter would be depreciated for a full year ($35,045,455). The $610 million in the second quarter would be depreciated for 9/12 of the year ($20,795,455). The $743 million

Property and Equipment—Depreciation and amortization are provided on a straight-line basis over the estimated useful fives of the assets. The following table shows estimated useful lives of property and equipment.

The type of depreciation method the Target Corporation uses is a straight-line method. Property and equipment is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. “Target amortizes leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably assured at the date the leasehold improvements are acquired” (Stock Analysis, n.d.).

> During a depreciable asset’s useful life, its revenue-producing ability declines because of wear and tear.

2. Depreciable asset B was purchased January 3, 2006. It originally cost $180,000 and, for depreciation

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.

Furthermore, by adopting a historical cost approach the assets will be depreciated over that useful life which has been estimated. With the useful life of an asset being so subjective it is hard to apportion a useful figure to depreciation. By increasing the useful life of an asset you are effectively spreading the depreciation expense over a longer period of time resulting in lower depreciation expenses and vice versa. In fact, Zheng et al. (2012) go one step further and consider depreciation to be a strategy for managers to manipulate profits.

Determine the depreciation expense for each of the 10 years of the asset’s life, assuming the company uses:

To calculate straight-line depreciation when you buy a building or equipment for your business, you calculate the useful life of the asset. Find the useful life of your asset, and then determine the salvage value at the end of the asset’s useful life. Subtract the salvage value from the original cost. Divide that figure by the number of years it will last. You can write off that figure each year on your taxes. The IRS publishes a

Depreciation is the reduction in the value of certain fixed assets. It is a periodic reduction of fixed assets, usually done every year. Fixed assets are assets that add value to the company. Examples of fixed assets that can be depreciated are vehicles, buildings, machinery, equipment and fixture and fittings. The only fixed asset that is not depreciated is land, because it is not worn-out overtime, unless natural resources are being exploited. When a company buys a new fixed asset it doesn’t account for the full cost of it as one single large expense, instead the expense is spread over the life time of the asset. This is done by depreciating the asset. For example a company purchases a CNC router for €50,000 and will be used for five year. If they pay the full amount in the

Telstra Corporation Limited (known as Telstra) is Australia 's biggest and leading telecommunications and media organization operating since 1901, which creates and runs telecommunications systems and markets voice, mobile, web access, pay TV and other entertainment items and administrations. In Australia Telstra provide 16.9 million mobile services, 7.2 million fixed voice services and 3.3 million retail fixed broadband services and that’s why we have an global existence covering 22 countries, including China.

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