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Financial Reporting and Analysis - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Amortization can be briefly defined as the allocation of the cost of the intangible assets. Lessing and residual value that has been projected to periods in which the asset is expected to contribute to the organization’s revenue generating activities estimated, capitalized cost is allocated less…
NBA franchise and other intangible assets have a value of $164,703 $164702 and $165 035 in years 1996, 1997, and 1998 respectively. This shows that the method of amortisation reflect the pattern of the usage of assets in generation of income. NBA intangible assets are defined in cost less amortisation that has accumulated. Straight line method spread over the useful estimated lives of the intangible assets which is generally 3-7 years provides the amortisation. b) Discontinued operations are referred to as parts of an entity that has been sold or has been put into held for sale grouping. While evaluating the future success prospects of an organization, an investor who has existed or a potential investor who will invest in future would remove the discontinued operations from consideration because these items have no bearing or effects on the future. The concern of the management is that some operations are discontinued to improve the results of the continuing operations. The operations and cash flows of the part has been removed from the ongoing operations and the entity will not have a significant involvement in the operations of the discontinued part after the transaction of disposal is made. ...
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