Capital asset

related to the capital gains. In the process of amalgamation, the amalgamating companies will transfer their capital assets to amalgamated company. This transfer is not taxable and thus a benefit to the amalgamating company. 3. To the shareholders: Suppose seventy five percent of the shareholders are transferred to the amalgamated company. Now these shareholders are transferring their shares to the amalgamated company, in this case the transfer is not chargeable. There will not be any capital gain as it

Standards Board (GASB), general capital assets are required to be recorded at historical cost. If the cost of the capital asset is unknown, then an estimated cost can be used. Also if the cost of a capital asset are donated, they are recorded at their fair value at the time of receipt, plus ancillary charges. The capital assets are reported in the government activities column of the government-wide financial statements. In addition, depreciation for capital asset are done at the government wide

extent of the same amount. This concept has resulted in accounting equation which states that at any point of time the assets of any entity must be equal (in monetary terms) to the total of equities. In other words, for every business enterprise, the sum of the rights to the properties is equal to the sum of the properties owned. The properties of the business are called "assets". The rights to the properties are called "equities". Equities may be sub-divided into two principle types: The rights

team. FASB Statement No. 141R describes three situations that establish the control necessary for a business combination, namely, when one or more corporations become subsidiaries, when one company transfers its net assets to another, and when each combining company transfers its net assets to a newly formed corporation. 2 The dissolution of all but one of the separate legal entities is not necessary for a business combination. An example of one form of business combination in which the separate legal

or more corporations become subsidiaries, when one company transfers its net assets to another, and when each combining company transfers its net assets to a newly formed corporation. 2 The dissolution of all but one of the separate legal entities is not necessary for a business combination. An example of one form of business combination in which the separate legal entities

profits or losses. Upon the formation of the partnership, each partner contributes capital into the company which can be either in a cash form (money) or non-cash form (other assets) such as equipment, machinery, etc. As the ownerships rights are divided among two or more partners, each partner has a separate capital and drawing account which tracks on their investments, distributions and share of gains and losses. The capital account is opened in their names in balance sheet and all transactions are accounted

Inventory Turnover Ratio 1) Working Capital Turnover- This ratio establishes a relationship between net sales and working capital. Net Current Assets are also known as working capital instead of total current assets is being compared with the sales. This ratio indicates the velocity of the utilization of net working capital. It indicates the number of times the working capital is turned over in the course of a year. This ratio is calculated as follows- Working Capital Turnover- Sales

The following are advantages to incorporating a business: A. Easier access to financial markets to raise capital through sale of stocks and bonds. B. Limited Liability C. Becoming a legal entity that can have a life in perpetuity. 2. Board of directors is elected by, and represents the interests of the shareholders of the corporation. 3. Corporate managers are expected to make capital budgeting and other decisions that are in the best interest of the corporations shareholders. 4. Sound judgment

In business to getting profits, we need to buy some current assets and fixed assets. .Source and components of working capital Sources of finance for working capital are two ways like long term loan and short terms loan. In working capital or short term source are include bank loans, retained earnings, credit from suppliers, long-term loans from financial institutions, or proceeds from sale of assets. Sources of working capital finance Long-Term Loans Long term loan is the amount of money

WORKING CAPITAL STRUCTURE AND LIQUIDITY ANALYSIS OF OIL AND GAS INDUSTRY Abstract Oil and Gas Industry plays a vital role in the socio-economic development of India. This study is designed to show the liquidity and Working Capital structure of Oil and Gas Industries, this study is mainly based on secondary data and the statistical tools like Mean, Standard Deviation, Coefficient Of Variance and Analysis Of Variance(ANOVA) have been used to the study. The study revealed that the liquidity of this