Balance sheet

bank’s balance sheet typically included floating-rate liabilities and long-term fixed-rate liabilities, whereas debit side consisted of floating-rate assets and long-term fixed-rate assets. Generally speaking, asset and liability management required the banks to match the economic characteristics of its cash in and out and the strategic decisions relative to interest rate exposure required banks to match their assets to liabilities effectively. If the debit and credit side of balance sheet were…

after taxes. The purpose of FASB rules applied to financial statement makeup are not about tracking the movement of cash through your business. They are concerned with the measurment profit or loss. Income does not explain what happened to your cash balance during the accounting period. It simply explains net income based on the accounting rules governing income statement creation. Net income is only one component of understanding and managing…

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,…

The Intangible Asset Dilemma Introduction Although intangible assets lack physical substance, some financial experts say that intangible assets are key drivers in value and competitive advantage. Items that are commonly classified as intangible assets include trademarks, patents, franchises, copyrights, and goodwill. Even though intangible assets are becoming more popular, intangible assets are under much scrutiny. Since the inception of FASB standard no. 142, Goodwill and Other Intangible…

generates benefit for the current year only. 2. The major difference between the two is that, the Capital expenditure is a one time investment of money. On the contrary, revenue expenditure occurs frequently. 3. Capital expenditure is shown in the Balance Sheet, in asset side, and in the Income Statement (depreciation), but Revenue Expenditure is shown only in the Income Statement. 4. Capital Expenditure is capitalized as opposed to Revenue Expenditure which is not capitalized. 5. Capital…

OBJECTIVE The objective of this paper is to understand and apply the analytical skills in evaluating firms’ asset management and performance. The selected firm from Bursa Malaysia is Tenaga Nasional Berhad (TNB). The asset management and financial performance of TNB is analyzed from the point of view of management, based on the financial statements for years 2005 to 2009. TENAGA NASIONAL BERHAD Tenaga Nasional Berhad or known as TNB is the largest and a leading electricity utility company in…

(Japan Foods Holding Ltd, 2015)(Appendix A) Market value per share as of 31 march 2015 = $0.49 Singapore dollars. (Yahoo! Finance, 2015) (Earl K.Stice, 2015) Inaccurate estimation of depreciating assets One major component of assets in JFH’s balance sheet is Property, Plants and Equipment (PPE). JFH uses a straight-line method for the depreciation of its PPE, and the depreciable amount is allocated equally…

by the company and varies from business to business. The gross profit, which is net sales minus the cost of goods sold for Apple Inc. has increased from $64,304,000 in 2013 to $93,626,000 in 2015 (“AAPL Income,” 2016). Net income is the concluding balance on the income statement. The net income is a company’s total profit or earnings for that fiscal year. In 2013, Apple Inc. had a net income of $37,037,000 which increased to $39,510,000 in 2014 (“AAPL Income,” 2016). This is a small increase…

to appear on the face of the balance sheet, where applicable.” (Thornton) One of the most important differences is current and non- current assets and liabilities used in the balance sheet of IFRS, in contrast GAAP only uses current assets and liabilities even though it recommends the use of both. Therefore, Chris will need to alter current assets and liabilities to current and non-current assets and liabilities in order to satisfy the requirements of IFRS balance sheet. Moreover, some of the…

Chapter 4 notes Understanding Financial Statements Includes the understanding of balance sheet and income statement through an analytical standpoint A classified balance sheet seperates assets and liabilities into sub groups. These groups are considered to help further analyze financial and business decisions Groups are known as long term liabilities and long term assets. Corporate social responsibility is the act of a company to assess and take responsibility for the company’s effect on…