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Essay sample - Finance accounting
Finance & Accounting
Pages 6 (1506 words)
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…
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. ...
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