Fixed Asset Acquiring, Disposal and Maintainace Procedures of Dem Collective

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ABSTRACT
An organization, whether it is in the primary sector, secondary sector or the tertiary sector would use fixed assets or non-current assets. Fixed assets can vary from buildings and premises to cars or the equipment used. Whatever the case proper management of fixed assets is needed. By this we mean providing proper depreciation, spending on maintenance and repair as well as adjusting the accounts clearly and accurately to show the changes in fixed assets. This project looks at the procedures involved in acquiring fixed assets and the disposal of fixed. It also uses accounting ratios to analyze the workings of the company and to make a fair judgment of whether the organization has been effective or not in its acquiring, disposal and maintenance of fixed assets. The authors selected DEM COLLECTIVE LANKA as its case study company and it is their accounts that were used in this project. KEY WORDS: depreciation, acquiring, disposal, accounting ratios

TABLE OF CONTENTS
Abstract………………..………………………………………………………………….ii Acknowledgement………………………………………….……………………………iii

CHAPTERS
CHAPTER ONE
INTRODUCTION................................................................................................1
ORGANISATION STRUCTURE.......................................................................4
TYPES OF FIXED ASSETS FOR THE LAST 5 YEARS.................................5
VALUE OF FIXED ASSETS FOR THE LAST 5 YEARS................................6

CHAPTER TWO
FIXED ASSET ACQUIRING PROCEDURE...................................................12
DOCUMENTS INVOLVED.............................................................................16
STRENGTH AND WEAKNESS......................................................................19

CHAPTER THREE
FIXED ASSET DISPOSAL PROCEDURE..................................................... 20
DOCUMENTS INVOLVED............................................................................ 22
DEPRECIATION AND MAINTAIN ..............................................................23
STRENGTH AND WEAKNESS ......................................................................25

CHAPTER FOUR
RATIO AND INTERPRETATIONS FOR THE LAST FIVE YEARS ........27

CHAPTER FIVE
CONCLUSION..................................................................................................33
RECOMMENDATION......................................................................................34 REFERENCES......................................................................................................35 APPENDIXES ...................................................................................................... 36


1.1 INTRODUCTION

1.1.1 COMPANY BACKGROUND
Dem Collective is a manufacturing company founded in 2004. The idea was to show that it's possible to combine ecology, ethics and quality with good design. This means the workers don't have to work 80+ hours a week for less than hundred rupees an hour. Also the clothes aren’t made from genetically modified cotton doesn’t contain hazardous chemicals and comes at a reasonable price.(DEM corporate website, 2010) 1.1.2 COMPANY ETHICS

DEM’s actions are based on respect for people and environment along the entire production chain, from cotton field to finished garment. Consequently, in consultation with their employees the following principles are followed:

Good Working Conditions
DEM supports the concept of having safe working conditions for their workers. Workers are paid reasonable pay and don’t have to work more than 37.5 hours a week. DEM bans child/forced labor and ensure that all the codes of human rights are followed.

Commitment
The company encourages interactions with it’s employees and believes in a two way communication, where information comes from the top level and workers can give their feedback. DEM has a lot of respect also for local cultures, customs and traditions....
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