Preparation of a Financial Statement

Asset valuation is the process of assessing the value of a company, real property or any other item of worth, in particular assets that produce cash flows. Asset valuation is commonly performed prior to the purchase or sale of an asset or prior to purchasing insurance for an asset. Asset valuation can be based on cash flows, comparable valuation metrics or transaction

April Cruz, Litesha Forbes, Phillip Gibson, Jessica Hewlett, Lily James, Velda Justin, and Nzingha Reel

Assets are to be recorded and valued based of the type of asset there are.

6. The ability to reliably measure the costs associated with and attributed to the intangible asset during its development

valuation of many assets in the firm’s financial statements. It is also tied to the demand for

13. FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes. Compare these methods with the specific identification method, discussing the theoretical propriety of each method in the determination of income and asset valuation.

The fair value of an asset is defined as ‘the price that would be received to sell an asset paid to transfer a liability in an orderly transaction between market participants at the measurement date” (Kieso, Weygandt, & Warfield, 2012). It is a market based measure (Averkamp, 2014). Over the past few years, Generally Accepted Accounting Principles has called for the use of fair value measurement in a company’s financial statements. This is what is referred to as the fair value principle (Kieso, Weygandt, & Warfield, 2012). The fair value of an asset or liability is based on an estimate of what the asset should be worth at the time of sale. This gives rise to some conflict among accounting professionals. It is believed that fair value may not be as accurate

Historically, the Du Pont innovation of (ROI) calculations represents one of the most significant turning points in the history of modern accounting and management, (Hounshell, 1998 ). The 1920’s began the Du Pont system company with methods and calculations from leaders, owners, executives, etc. Furthermore, it was the beginning of the integration of financial accounting, capital accounting, and cost accounting. When it comes to return on assets (ROA), they are a (ROI) measure that evaluates the organization’s return or net income relative to the asset base need to generate the income, (Finkler, Ward, & Calabrese, 2013). The Du Pont Company has been the leader of industrial research. Throughout the years with companies emerging, Du Pont’s method was becoming more prominent with owners and executives needing a method for

To determine effectiveness on the company’s management of assets, asset management ratios would give measures indicating such effectiveness. If a company has excessive investments in assets, free cash flow and stock price might be reduced. If a company does not have enough assets, it might lose sales, hurting profitability, free cash flow and stock price (Brigham & Ehrardt, 2008)

It is an indicator of managerial capabilities to effectively and efficiently utilize company’s assets (Mathur 2000). It includes analyzing the average collection period,

Accounting principles are like the Ten Commandments to a CPA. The principles are recommendation or instructions on what an account should follow when logging and informing on all accounting transactions. Businesses rely on their account every month to maintain the financials records of the company. At the end of each month, it is important for every transaction to be documented and posted as a financial entry in the monthly trail balance. An account needs to ensure all journaling is correct; an account must know the importance of how to record prepaid expenses, unearned revenues, accrued expenses, and accrued revenues.

The company's assets at the end of 2011 were $565.27 million. The reason why this is important is it will determine the net worth for the organization. This is used by analysts and investors to evaluate the price of the stock. At the same time, many lenders will often compare the total amounts of assets in with the debt to determine the financial solvency of the corporation. ("Maximus Annual Report," 2011) ("Maximus Annual Report," 2010)

3. Total asset turnover: measures the efficiency of a company's use of its assets to product sales.

According to the Oxford Dictionary of Accounting intangible asset is ‘’An asset that can neither be seen nor touched’’. In the current market place the most common examples of these types of assets would be goodwill, brand recognition and intellectual properties such as patents, trademarks and copyrights. In this essay I will attempt to answer what difficulties an accountant will face when trying to measure these intangible assets.

An intangible asset is an identifiable non-monetary asset without physical substance. (AASB 138, para 8). In order for an asset to be recognised as an intangible asset three main characteristics have to be met namely they are: (i) identifiable, (ii) non-monetary, (iii) without physical substance. An intangible asset can either be separately acquired or internally generated. This report will focus on the accounting treatment of internally generated intangible assets prior to and after the adoption of IFRS.