Accounting Questions On Provisions And Employed Company
a. Public listed company
b. 1. The company name has Ltd in it which means limited liability
2. Due to the information this report give us, this company has more than 3000shareholders with 563 million shares. Private company cannot has so many capital.
3. This company is ASXlisted Company.
c. 1. Other assets and Pre- payments
2. Provisions and Employee benefits
e. Consolidated financial report contains the following items: assets, liability, income equity, expenses and cash flow. It can give a great look of this whole company.
a. Contributed equity: This Company currently has 562 million shares which raised in the public. It can be calculated by the numbers of shares and price per share.
Reserves: Share-based payments and foreign …show more content…
2012: 30,600,000 2013: 120,889,000
c. Consolidated statement of changes in equity.
d. This statement shows operations of the company and what have changed in the equity in the past year (AccountingExplained, 2010). Here are 4 basic components of retained earnings: Beginning balance of retained earnings, Corrections for prior errors along with the related tax effect, Net income, Dividends by the owner.
b. Lower of cost and net realisable value
Lower of cost: The inventory must be written down if the market value is lower than the cost of the inventory.
Net realisable value: selling costs higher than expected price.
e. Provision for impairment does not included in latter amount.
b. Land, buildings, plant and equipment, capital under construction.
c. Land: Not depreciated
Buildings: Over 40 years
Plant and equipment: Between 1.5 and 20 years
f. Depreciation: Allocation of the cost of a tangible long-lived asset over its useful life. Depreciation refers to allocation of the costs of such items as plant and equipment, buildings, and furniture. (Investopedia, …show more content…
a. Goodwill can be neither touched nor seen and it is sometimes hard to measure. It is shows the value of a firm in terms of reputation. For example, if a company has a brand which is well known and it has solid customer base (Investopedia, 2011).
Good will can be calculated by this formula:
Money spent to acquire a company – Total net assets= Goodwill
b. Goodwill(47,197,000), development expenditure(18,005,000), marketing and distribution rights(13,820,000), trade name(3,958,000)
c. Net carrying amount(Balance at end of year net of accumulated) = Balance at beginning of year net of accumulated amortization+ additions + Acquisition of subsidiary + Amortization + Foreign currency restatement
a. Provision is a process by which a certain amount is set aside from the current year 's profits to meet future uncertain liabilities or losses. For instance, provision for doubtful debts is an estimate based on the judgment of the management that a certain percentage of the receivables will be delinquent and thereby cause a loss to the business.
b. Current: Employee benefits Non-Current: Employee benefits, Restoration.