Sony Corporation Financial Statement

Topics: Depreciation, Balance sheet, Generally Accepted Accounting Principles Pages: 5 (1795 words) Published: August 19, 2012
Sony Corporation is a global wonder, the main headquarters for them are based in Japan. They offer many different electronics, games, movies, music, network services, and financial services businesses. Sony corporation also has a joint venture in mobile phones with Sony Ericsson. Sony Corporation has plants, warehouses and stores in many different countries including the U.S. This review of Sony Corporation’s financial statements will show how well this company has done in repairing and building their company back up since the devastating tsunami in 2011. What is the amount of property and equipment on the balance sheet for the two most recent years? In 2010 and 2011 Sony Corporation had 3,356,395 (Millions in Yen) and 3,084,758 respectively in land, buildings, machinery, equipment and construction in progress. The depreciation expense is very high totaling 2,348,444 in 2010 and 2,159,890 in 2011. What amounts are on the cash flow statement for the most recent year that relate to depreciation and gains and sales of property and equipment? Sony had a very high depreciation expense in 2011 affecting their cash flows by 325,366. The gains on all of their sales of property and equipment totaled 20,106. What amounts are permitted for inclusion in the capitalized cost of property and equipment? Only 10,958 is included for capitalized costs of property and equipment. Looking at the footnote disclosures of the company, what are the individual components of property and equipment? Sony recorded restructuring charges of 62,318 million Yen to revamp and repair buildings that we damaged in the tsunami. Property plant and equipment is recorded at cost and depreciated by the declining balance. Only one manufacturing factory and its equipment are depreciated by the straight line method. Sony also has goodwill in the amount of 40,774 for property and equipment. How do companies account for nonmonetary exchange and dispositions of property and equipment? Companies recognize immediately any gains or losses on the exchange using the fair value of the asset given up or the fair value of the asset received. Does the company have intangible assets?

Sony has a decent amount of intangible assets. Sony has patent rights, know-how, license agreements, software to be sold or leased, music agreements, broadcasting agreements and “other”. The total of all of the intangibles for 2011 combined is 512,990 million in Yen. What is the amount of amortization expense? Sony has 210,899 in amortization expense for 2011, down by 1,475 from 2010. What amounts on the most recent cash flow statement relate to the purchase and sale of intangible assets? Sony bought 83,188 in intangibles this last year alone and only sold 21,887 in intangibles. How do intangible assets differ from property and equipment? Intangible assets cannot be seen or touched, they are not physical. Property and equipment can all be seen, held or touched. Any cost associated with obtaining the intangible asset is included in its cost. Does the company have goodwill?

Sony has 469,005 in total goodwill and has sold 229 million worth in 2011. What are the footnote disclosures relating to goodwill and the related acquisition? Sony had some purchase price adjustments for prior years disclosed along with disclosures explaining the different acquisition amounts that came from music and broadcasting services. Please also describe the calculation of goodwill and how we account for differences between fair value and book value of assets acquired. You can use the income method to calculate goodwill by determining the net present value of future cash flows of the business then subtracting that total from the fair market value. What are the company's depreciation methods?

Sony Corporation uses the declining balance for mostly everything it owns. Only one manufacturing warehouse uses the straight line depreciation method on its equipment and assets. What is the range of estimated...
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