Recommendation: its advantages and disadvantages - Essay Example

Only on StudentShare

Extract of sample
Recommendation: its advantages and disadvantages

Recommendations To overcome the problem of unsystematic allocation of depreciable amount over the asset’s useful life, SASB has to find a method to allocate the total amount which is to be depreciated over each accounting period in the assets useful life. This can be done by use of either of two methods which include: straight-line method or residual method. Straight-line method is applied by allocating the depreciable amount equally to the whole useful life of the asset. The company should therefore, choose a constant annual depreciation charge, usually a percentage. This will be a systematic method since at no one point will the company fail to allocate the depreciation amount. The problem of revision of residual value on the other hand can be overcome by ensuring that the amount is revised on an annual basis with the written down value of the asset being used as the base of the percentage. Application of this method also requires that qualified professionals are employed to ensure that there are no inconsistencies involved in calculation (Alexander & Archer, 2008, P. 27). To the problem of revision of the depreciation method, I would recommend that SASB does not change the method that it decides to use between the two options. ...Show more

Summary

Depreciation Name: Institution: Depreciation has been defined by scholars as the process of allocating costs of tangible assets over periods which the asset has benefitted the company (Peterson, 2002, P. 95). With time, the long-term assets of a company become obsolete while some lose value due wear and tear effects…
Author : warrenhane
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Recommendation: its advantages and disadvantages"
with a personal 20% discount.
Grab the best paper

Related Essays

How the introduction of a new technology can assist an organisation in achieving its business objectives (Apple Company)
In the introduction part of this research and analysis project, the topic chosen, the reasons for the topic chosen and the aims and objectives of the research and analysis report are presented.
34 pages (8500 words) Dissertation
Debt and Equity Financing - Advantages and Disadvantages
The ratios can be divided into various categories, such as profitability, gearing and liquidity, each focusing on a different area of the financial outlook of the organization and highlighting the company’s performance. These analysis form an integral part of the financial statement analysis, especially from the investors point of view who always strive to invest in countries having strengthen and stabilizing financial ratios and representing an upward trend.
10 pages (2500 words) Research Paper
Health and Safety at work course work
Furthermore it has now become the part of the Government. The ERRA has many departments but over here the planning 1 department has been discussed. PLANNING 1 DEPARTMENT: - Planning-I Wing has been mandated for planning, designing, coordinating, funding, monitoring and ensuring timely completion of different programmes falling under Social Protection Sector, Livelihood Sector and Heritage Sector together with cross-cutting themes of Environmental Safeguards and Gender Equality.
5 pages (1250 words) Coursework
Whole Foods Financial Recommendation
Whole foods is a giant retailer in the food industry with sales volume reaching several billion dollars. Its earnings have been growth oriented in the past couple of years. It dipped after 2006 when its operating profit margin dropped from 5.69% to 4.51% and saw a further decrease to 2.97% in 2008.
4 pages (1000 words) Research Paper
Explain how the financial difficulties faced by the Irish and Greek governments have impacted on Euro debt markets
Majority of Western European states have higher GDPs and living standards whereas many of the Eastern Europeans economies are still struggling to attain an improved growth rate. The recent European sovereign debt crisis negatively affected the Europe’s economic status.
3 pages (750 words) Essay
Recommendation Brief for an Internal Auditor
This paper intends to convince a client about the benefits of using an internal auditor. Functions of an Internal Auditor An internal auditor has an objective of assisting “all members of management in the effective discharge of their responsibilities, by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed” (Ridely, 2008, p.9).
3 pages (750 words) Essay
Investing in App Recommendation
For Tapjoy, Appgroves, chop and Qiuqiu applications, they are compatible in iOS, android devices, HTML5 including windows phone 7 device. Thus, gets attention from most users (Marvin, 310). Cost of the end user Applications by MEDL Company have the highest cost, due to the devices using them, most going for $2.99.
4 pages (1000 words) Admission/Application Essay
Guillermo Furniture Store Recommendation
RECOMMENDED OPTION: Among the given options it is advisable for Guillermo to under-take change in its business model. It shall incorporate the high tech solution for its business to meet the competition and reduce the impact of increasing cost. Among the given options it has mainly been suggested for the reason that with one time investment, it will enable business to reap benefits in the long term unlike other options which would require business to constantly strive to stay competitive.
4 pages (1000 words) Essay
Advantages and Disadvantages of Conducting Business Offshore.
Advantages and Disadvantages of Conducting Business Offshore. Offshore company relates to the incorporation of a company overseas, and it is utilized in a way that investors are able to avoid tax laws imposed to business in their home countries. Moreover, the offshore are legal in any if they are set for the right purpose regarding the business in which they are involved.
3 pages (750 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT