The Importance Of The Assets And Depreciation Property, Plant And Equipment For The Two Annual Reports Between National Australian Bank

In the short module of accounting that I did in first year, we were taught to establish whether or not something can be recognized as an asset. We had to make sure that each element of the definition of an asset were met, we had to do a little ‘definition and recognition.’ I am going to prove

Items that can be converted into cash quickly are called current assets. These would include, cash on hand, inventory, short-term investments and accounts receivable. Liabilities are financial obligations that the organization owes. For example, short-term notes payable; loans that come due in less than one year and accounts payable; money owned for goods and services provided to the business.

Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold. Assets include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as

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

Another important aspect of business that owners must understand is what assets and liabilities are, and also the stockholders equity. These are all shown in detail on the balance sheet which is discussed in the next paragraph. An asset in its simplest form is a resource owned by a business. This could be anything from cash and equipment, to patents and trademarks. Liabilities are debts or other payments that the company owes. These can range from notes and bonds payable to deferred taxes and accrued liabilities from the past. The last thing an owner must understand is the stockholders equity. This is the claim that the owner has to the assets. These are all related and shown in detail on a balance sheet. As the name implies, the assets must equal the liabilities plus the stockholders equity. These three things are used to determine many things including assets to debt ratio which can help determine

* Statement of net assets (Balance sheet) presentation required classification of current and non-current of assets and liabilities. Equity section presents: Net Assets Invested in Capital Assets, Care Organizations Net of Related Debt, Restricted Net Assets, and Unrestricted Net Assets.

“Assets are economic resources that have expected future benefits to the business” (Baker, 2014). There are short and long term assets. Short-term assets are assets that will be utilized within a year. Examples of short-term assets are cash, inventory, and accounts receivable. Long-term assets are assets that will continue to beneficial longer than a year. Examples of long-term assets are buildings, land, and equipment.

The four different types of assets are Current Assets, Long-Term Assets, PPE (Property, Plant & Equipment), and Intangible Assets. Team B’s task was to define current assets. A current asset is an asset which can either be converted to cash or used to pay current liabilities within one year. Typical current assets include

Assets and liabilities are bifurcated in current and non-current. Current asset is defined as any asset which can be converted into cash readily and will be used within one accounting period normally 1 year e.g. Receivables, Inventory, Prepaid Expenses.

The aim of this report is to distinguish between capital expenditure and revenue expenditure and to explain the accounting treatment of different transactions. The classification of expenditures as capital or revenue will have an impact on the statements of financial position and comprehensive income. Therefore, when preparing financial statements, accountants need to adhere to and comply with the rules and regulations set out by the International Accounting Standards Board (IASB). As such, the report is limited to discussing the various expenditures covered by accounting standards. Furthermore, the report identifies what items can be recorded in accounts as assets in terms with the relevant accounting standards.

The “Current Assets” section in the balance sheet states inventory (stock), receivables (debtors), and work in process or cash that is constantly flowing in and out of a firm in the normal course of its business, as cash is converted into goods and then back into cash. In accounting, any asset expected to last or be in use for less than one year is considered a current asset. In term of Wansbeck LTD they have had a decrease in current assets from 2006 to 2007 by 10,000 this is due to an increase of inventory worth by 5,000, an increase in receivables by 5,000 and finally a complete loss of 20,000 from their bank accounts.

Assets are the resources that the organization has and the money generated. Liabilities are resources that are owed for services, supplies and other things that the organization has acquired. The ideal goal of any business is for the assets to be greater than the liabilities (Cleverly et. al.).

* Financial Accounting – physical assets are recorded on financial statements as assets whereas employees’ salaries and other benefits such as pensions are recorded as expenses or liabilities. This is so because in order for an asset investment to appear on a balance sheet one of the criteria that it must meet is that the company must

One of Money Cares Investment Corporation asset is that they only have a select amount of employees who depend on modern technology. They also have assets that are their investments, cash in the bank and the cash in their hands. Not to mention equipment, furniture and fixtures along with the building they are occupying. If Money Cares Investment Corporation own any vehicles that will be considered an asset too.

a- i) According to SCON 6 article 25, assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. Assets has three characteristics: it embodies a probable future benefit that involves a capacity or in combination with other assets, to contribute directly or indirectly to future net cash inflows, a particular entity can obtain the benefit and control others’ access to it and the transaction or other event giving rise to the entity’s right to or control of the benefit has already occurred.