StudentShare solutions
Triangle menu

Financial Accounting - Essay Example

Nobody downloaded yet
Turnover 21,134 Cost of sales 15,345 Gross profit 5,735 Distribution costs 2,520 Administrative expenses 1,417 Operating profit 1,798 Investment income 80 Finance costs 11 Profit before taxation 1,867 Taxation 581 Profit after taxation 1,286     Profit attributable to:   Parent 1,206 Non-controlling interest 80   1,286     A consolidation schedule is provided Appendix 1. It shows how the figures for turnover, cost of sales and gross profit were arrived at. The Statement below represents the Consolidated Statement of Financial Position of Chambers and Subsidiary for the period ending 2012. The relevant calculations are shown. ...
In fact, internally generated goodwill cannot be recognised as an asset while goodwill that has been acquired is recognised as an asset (IFRS.org 2012a). If a self constructed asset is constructed to be used in the business it is treated in the same manner as an acquired asset. However, self constructed assets which are produced for sale as part of the normal activities of a business are dealt with under IAS 2 Inventories. The two assets are not quite comparable as one set is something you can see and touch physically while the other is not. However, there is no reason why goodwill that is internally generated should not be recognised as an asset. Goodwill is something that a business generates internally, although it can only be recognised when someone acquires it. We are all aware that when a business is sold goodwill is the excess over the fair value of the separable assets that the buyer/acquirer is willing to pay. The fact that someone is willing to pay for it means that they have placed a value on it. That value could be anything and the fact that someone places a value on it and is willing to pay means that it is measurable – whether objectively or subjectively. Casta et al (2011) indicates that some of the models that have been created to value internally generated goodwill cannot explain how goodwill was created. However, the fact that we know from the definition that goodwill arises from the reputation that has been built up a business over time means that the creation of goodwill can be explained. There are also other factors such as the area in which the business is located; the employees as it relates to their experience, competence, efficiency and reliability; and a host of other factors (Wood and Sangster ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Accounting Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/79093-financial-accounting
(Financial Accounting Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.net/finance-accounting/79093-financial-accounting.
“Financial Accounting Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/finance-accounting/79093-financial-accounting.
  • Cited: 0 times

Summary

Instructor Date: Financial Reporting and Accounting: Part 1 The following represents Chamber’s Consolidated Income Statement showing the profit made by the consolidated entity and the amount relating to minority interest. Chamber plc and Subsidiary Consolidated Income Statement For the Year Ended 30 June 2012   ?…
Financial Accounting
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Accounting"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial accounting
Contents Financial accounting 1 Contents 2 Introduction 4 Objectives of the Project 4 Scope of the Project 5 Part A 5 Background of Sainsbury & Tesco 5 Comparative Price Movements 6 Comparative Ratio Analysis 7 Profitability Analysis 8 Management Efficiency Analysis 9
16 pages (4000 words) Essay
Financial Accounting
The research includes financial statement analysis of the company’s 2010 accounting period and 2011 accounting period. The financial statements indicate Tesco Plc fared financially well during the 2010 and 2011 accounting periods. Part 1 (a) Chief Executive’s Review Some of the contents of the chief executive officer’s report are useful.
8 pages (2000 words) Essay
FINANCIAL ACCOUNTING
60,000. Plant and Machinery Item 1: As per IAS 16, depreciation charge for the current year would be cost divided by the useful life. As such, the charge would amount to ?800,000/5=?160,000. Plant and Machinery Item 2: Assuming that the policy of depreciating plant and machinery for 5 years applies to all items of plant and machinery, the depreciation charge for the year in relation to this item would be ?
6 pages (1500 words) Essay
Financial accounting
FINANCIAL ACCOUNTING ESSAY Table of Contents Table of Contents 2 Introduction 3 Assets 3 Use of Technology and Revenue Generation 4 Asset Valuation 5 Source of Funds 6 Conclusion 7 References 8 Introduction Ford Motor Company is one of the leading automobile manufacturing companies of the world which was founded by Henry Ford in the year 1909 (Yahoo Finance, 2012).
5 pages (1250 words) Essay
FINANCIAL ACCOUNTING
In the final accounts, it is an expenditure that is deducted from the revenue. Deprecation shows the amount of decrease in the past worth of assets. Stakeholders can review this data and identify when to purchase substitute assets for the organization. For instance, an industry frequently replaces its manufacturing equipment at some time throughout its operations.
7 pages (1750 words) Essay
Financial accounting
Hence it is not necessary for Foster’s to show that there is a current obligation in its financial statements. However due to the past events, it can be construed that there is a possibility of outflow of resources in the future. In this case,
2 pages (500 words) Essay
FINANCIAL ACCOUNTING
t and machinery for 5 years applies to all items of plant and machinery, the depreciation charge for the year in relation to this item would be £180,000/5=£36,000. Motor Vehicles: The depreciation charge for the new vehicle purchased would be £25,000 x 40% = £10,000. The
6 pages (1500 words) Essay
Financial accounting
Consequently, the financial information estimates provided to the investors will be biased on the current value of the firm and its
6 pages (1500 words) Essay
Financial accounting
Profitability ratios are used in the determination of a bottom line of a company and the returns it offers the investors. They basically show the overall performance and efficiency of a company. Ratios in this category are dived into
4 pages (1000 words) Essay
- Financial Accounting
See appendix 1 (Albrecht 2007, pp. 901). (a): when preparing the profit and loss account, the sales increase by £ 3,000 has been factored in. On a similar note, the quarterly payment of electricity cost and the reduction of the electricity by £
6 pages (1500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Financial Accounting for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us