Finance accounting Essay example
High school
Essay
Finance & Accounting
Pages 6 (1506 words)
Download 0
Finance accounting Table of Contents Executive Summary 3 Impact of Australian Accounting Standards 3 Reversal write-down 3 Current and non-current assets and methods of valuation 4 Current financial position of BHP Billiton 5 Importance of Reserves in BHP Billiton 6 Conclusion 7 Reference 8 Executive Summary The study shows the impact of the Australian Accounting Standard in BHP Billiton, through which the decision of write-down can be avoided as the decision of write down, is very harmful for any company as such…

Introduction

Lastly, the reserves of the company is estimated and their modes of utilization so that the write-down of the company can be avoided. Impact of Australian Accounting Standards When the net realizable value for all of the subsequent period. Due to a certain circumstances the inventories of the company needs to be written down below the cost that no longer exists or with the evidence related to the net realizable value caused as a result of the changed economic circumstances (Walton & Aerts, 2006, p.120). This leads to the reversing of the write-down where the amount if restricted to original write-down, so much so, the new carrying amount of the company will be lower than the revised net realizable value along with its associated cost. With the selling of the inventories the carrying cost of the inventories is treated as the expense in the period in which the revenue is recognized. This result in the written down value of the inventory is considered as the cost or occurrence of losses. ...
Download paper
Not exactly what you need?

Related papers

Finance accounting assignment on earning management
The second part of the paper would answer questions relating to impairment of assets. It will involve a critique of the circumstances under which impairment is declared. It will also explain when companies must perform impairment reviews and examine a practical case of impairment my Peugeot-Citroen and Vodafone. …
Finance accounting dissertation: Tate & Lyle plc finanical valuation
sheet and income statement of the company are as follows: 51 Abstract Tate & Lyle plc is one of the largest companies based in UK providing food ingredients and services solution worldwide. The study provides the details financial analysis of the company. In the case study the financial and operational evaluation of the company in questions has been undertaken. For the purpose of operational…
GlaxoSmithKline Finance and Accounting Essay
GSK is a UK based MNC which its presence in the pharmaceuticals and consumer health care. The GSK group prepares its consolidated statements in accordance with the IFRS and the company’s financial statements follow the guidelines of UK GAAP. The second part includes the main uses and types of users of accounting information. It has been analyzed if the Group has provided sufficient and relevant…
Finance and accounting
As a result, auditors in this case are required to review the accounting information in order to determine how well the business is doing. It requires proper financial statements which provide a clear insight on the economic health of these accounting companies. Generally, it gives an insight on the company’s soundness in the short and long term. As a result, financial analysts, investors and…
Finance and Accounting Concepts
It consists of financial activities which include collecting, recording, analyzing and communicating the financial information to others. The financial data is a collection of facts which is expressed in numerical symbols and characters. The major task of the accountant is to records the financial transactions and converts data into financial information. The study will deal with the various…
Finance accounting assignment
Income encompasses both revenue and gains. Revenue is income that arises in the course of ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends and royalties. “Revenue is recognised on the provision of goods and services that relate to the ordinary activities of the entity” (ACCA, 2013). Gain or loss is calculated with…
Finance and Accounting Essay
The funny bit about such adjustments is that they can be based on the annual expenses of operating leases (Arms 2010). On the other hand, they can as well be based on the undiscounted available future operating lease payments. These are normally available on the notes to the financial statements. Such is the information that is normally available to many users of the statements and the entire…