where [NCA.sub.t] is the amount of
noncurrent assets at the t moment of time; [VCA.sub.t] is a variable part of current assets at the t moment of time; [CCA.sub.t] is a constant part of current assets at the t moment of time;
$000 Cost 1,800 Depreciation at 25% in year one 450 1,350 Depreciation at 25% in year two 337 1,013 Depreciation at 25% in year three 253 760 Depreciation at 25% in year four 190 End of year four (as shown in question) 570 Step two is to apply a depreciation rate of 25 per cent on a reducing-balance basis to HJ's
noncurrent assets over the four-year period.
Subtract the amount of cash expended to acquired any fixed assets, investments, and/or other
noncurrent assetsBALANCE SHEET ASSETS CURRENT ASSETS: Cash $450,000 Notes and accounts receivable 850,000 FIXED ASSETS: Land 300,000 Buildings 550,000 Machinery and equipment 220,000
NONCURRENT ASSETS: Prepaid insurance, taxes, etc.
Its net assets, total revenues and total expenses for 2009 and 2008 are as follows: 2009 2008 Current assets $ 626 $ 432
Noncurrent assets 950 1,263 Total Assets $ 1,576 $ 1,695 Current liabilities $ -- $ 18 Net Assets 1,576 1,677 Total liabilities and net assets $ 1,576 $ 1,695 Revenue: Scholarship donations $ 351 $ 371 Financial literacy donations 199 254 Investment and other income (269) 28 Total revenue 281 653 Expenses: Administration expenses 88 192 Scholarship distributions 294 292 Total expenses 382 484 Change in net assets (101) 169 Net assets, beginning of year 1,677 1,508 Net assets, end of year $ 1,576 $ 1,677
It also requires disclosure, for each reportable segment (if the amounts are included in the determination of segment assets, or otherwise are reviewed by the chief operating decision maker), of the amount of investment in associates and joint ventures accounted for by the equity method, and the total expenditures for additions to
noncurrent assets other than financial instruments, deferred tax assets, postemployment benefit assets and rights arising under insurance contracts.
In Chapter 7, you learned about various valuation methods for current and
noncurrent assets, accounting procedures specific to cash, accounts receivable, inventory, and prepaid expenses, and information disclosed in the notes and tables that accompany the financial statements.
He cited Spiegel Co., which showed $120m of long-term debt and only $30m of
noncurrent assets. He then proposed that, if the deferred tax associated with installment receivables (a current asset) should be shown as a current liability, "it immediately raises the question of whether 90 of the 120 million of the long-term debt shouldn't also go up there, because it has to apply to something on the current asset side" (28) (p.
Intangible assets are generally defined by the FASB as current and
noncurrent assets that lack physical substance.
Total assets are the sum of current and
noncurrent assets. For Howard's Electronic Retailers, Inc.
GAAP on business combinations;
noncurrent assets held for sale and discontinued operations; and accounting for costs associated with exit or disposal activities.
