accidents may cause emergency and it may lead to disaster, which may cause heavy damage to plant, property, harm to person and create adverse affects on production. Many disasters like Bhopal gas tragedy, Chernobyl nuclear disaster etc. have occurred at many places in the world causing heavy loss of life and property. Emergency situation arises all on a sudden and creates havoc and damage to person, property, production and environment. Therefore such situations and risks should be thought in advance
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V. AMENDMENTS Amendments to IAS 16 Paragraph 62A has been added to prohibit the use of revenue-based methods of depreciation for items of property, plant and equipment. Paragraph 62A clarifies that this is because the revenue generated by an activity that includes the use of an item of property, plant and equipment generally reflects factors other than the consumption of the economic benefits of the item, factors such as: – Other inputs and processes – Selling activities and changes in sales
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Running head: NOTES TO THE FINANCIAL STATEMENTS Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS Abstract The course project is an opportunity to learn how to develop notes to the financial statements and gain experience in writing business topics as well as the need to have detailed information provided in the notes to the financial statements. This includes determining which items need to be included in the notes, which items need to have additional information provided
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Activities | | | |($9,000) | | | | | | | | | Additions to property, plant, and equipment | | | |(6,000) | | Other investing activities | | | | | |(1,000) | |Net cash provided
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Activities | | | |($9,000) | | | | | | | | | Additions to property, plant, and equipment | | | |(6,000) | | Other investing activities | | | | | |(1,000) | |Net cash provided
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After the controller of Stern Corporation had ascertained the changes in accounts receivable and the allowance for doubtful accounts in 1998, a similar analysis was made of property, plant, and equipment and accumulated depreciation accounts. Again the controller examined the December 31, 1997, balance sheet [see Exhibit 1 of Stern Corporation (A)]. Also reviewed were the following company transactions that were found to be applicable to these accounts: On January 2, 1998, one of the factory machines
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Utility company have very less inventory and much more property and equipment compared to other companies. Also, their net profits/new sales is the highest compared to other companies. Collection period is one and a half month (that is the collection period of the bills), The profit margin is also the highest because of lower costs. 2. Japanese Trading Company - D Reasons: A trading company would have the lowest value of property and equipment, while their Amount Receivables will be the highest
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Investment property TAS 40 firstly announced to use in 1 January 2011. Basically, TAS 40 applies to give more alternative choices to measure the value of lease hold right in investment property by fair value or cost price. Definition of investment property Investment property is land or a building or part of a building or both held by the owner or the lessee under a finance lease to earn rentals or for capital appreciation or both. However, the property is not investment property when the
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Week Five Exercise Assignment Financial Ratios 1. Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10: | Edison | Stagg | Thornton | Cash | $6,000 | $5,000 | $4,000 | Short-term investments | 3,000 | 2,500 | 2,000 | Accounts receivable | 2,000 | 2,500 | 3,000 | Inventory | 1,000 | 2,500 | 4,000 | Prepaid expenses | 800 | 800 | 800 | Accounts payable | 200 | 200 | 200 | Notes payable: short-term | 3,100
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a change in the inventories account would be classified as: A. an operating activity. B. a financing activity. C. an investing activity. D. a noncash item that need not appear on the statement of cash flows. 5. An increase in the plant and equipment account of $100,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as: A. an addition to net income of $100,000 in order to arrive at net cash provided by operating activities
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