Balance of payments

both the trading account and the profit and loss account and explain the difference between the two. I am then going to give examples of the key component parts of the statement of financial position of a commercial company. I am going to cover the balance sheet and provide an example along with a full explanation of all the financial terms used. Financial statements Financial statements are a collection of reports that outline…

Therefore, Caterpillar earned 4.36% from existing assets in the year 2014. Results from 2013 were equivalent while holding at 4.46%, and in the year 2012 Caterpillar’s return on assets was 6.39%. Caterpillar’s competitors displayed improved results with the Terex Corporation having a return on assets of 5.38% in the year 2014. Another competitor of Parker-Hannifin Corporation held a 7.84% return on assets, which is superior to Caterpillar’s 4.38%. (Quotes & Info- Yahoo! Finance, n.d.). The…

Good governance and Indonesian state asset management According to Hughes (2012,) Governance is about framing rules and organizations with the intention of providing accountability. Within the context of Indonesian state asset management, good governance principles are defined based on the list of good governance principles as listed by the National Development Agency, which include principles such as transparency, accountability, regulatory compliance, professionalism and competency, efficiency…

investors and creditors prefer FV. On the other hand these policy and decision makers lost interest in historical cost (HC) because it became old fashioned and doesn’t keep up with current market. Nowadays everyone wants to see the actual values on the balance sheet, “one of the major financial statements that gives a snapshot…

Additionally, impairment charges also allow investors to be able to assess corporate management and how they make decisions. Companies that write off a lot of charges due to impairment have not made strategic investment decisions. On the other hand, managements that choose to take an all-encompassing charge should be viewed more favorably than companies that take recurring impairment charges-manipulating their position. Recent research conducted by KPMG, indicated “impairment charges have the…

manner is associating a cost to the items, like the appraisal value and overhead cost (Schroeder et al, 2011). Brignall (2007) mentions that under the general accepted accounting principles (GAAP), the assets a firm acquires must be recorded on the balance sheet with the historical cost; additionally, the long lived assets must be assessed accordingly due to inflation minus the depreciation rate. Schroeder et al (2011) added that the depreciation of the assets is computed for financial purposes,…

week market high of 1.08 and low of 62 cents, they have continued a positive momentum with strong market performances in what has been increasingly challenging conditions. They have positioned themselves well with a strong metropolitan radio group, investment focus on growth areas, with radio expected to grow 4% year on year over the coming five years Ibis World (2015).This positions them importantly with just over 60% of proportionate earnings in growth media, compared to 44% at the end of FY13…

It also shows how these cash link the ending balance to the beginning balance shown on the company’s statement of financial position. From the statement of cash flow (table 10), we know that NIKE’s cash from operation of fiscal 2014 is positive $3003 million compare to that of fiscal 2013 which is positive $2968…

Reporting Intangible Assets Accurate financial reporting of an organization is very important in today’s modern business world. Intangible assets play a critical role in the valuation of an entity as they may bring significant value to the table. An intangible asset is an identifiable nonfinancial asset which lacks physical properties according to both the international community as well as the standards set by the United States. Intangible assets include items such as such as trademarks,…

In this essay I will consider why Accounting Conceptual frameworks have been devised; what are the main principles to be considered when drawing up any accounting statements and who uses them. I will also consider what different financial statements can be produced and what the key elements are in these statements. Finally I will discuss some issues arising from the use of accounting conceptual frameworks. Accounting Concepts and Principles are conventions that give a structure for financial…