96 Accounting Standard (AS) 10 Accounting for Fixed Assets Contents INTRODUCTION Definitions EXPLANATION Identification of Fixed Assets Components of Cost Self-constructed Fixed Assets Non-monetary Consideration Improvements and Repairs Amount Substituted for Historical Cost Retirements and Disposals Valuation of Fixed Assets in Special Cases Fixed Assets of Special Types Disclosure MAIN PRINCIPLES Disclosure Paragraphs 1-6 6 7-17 8 9 10 11 12 13 14 15 16 17 18-37 37 134 AS 10 (issued
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Lecture on Production and Cost of Production Basic Economics Production is the transformation of inputs into outputs. Production Function shows the relationship between quantities of various inputs that can be produced with those inputs per unit of time expressed in a table‚ graph or an equation. Q = f (K ‚L) given a technology Where: K = Capital and L = Labor Periods of Production 1. Short – run – the use of at the least one factor of production cannot be changed‚ or there are
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FIXED INCOME SECURITIES Fixed Income can be a very important investment class by which one can diversify his/her portfolio to reduce risk. Putting all your money into equities (read more about equity investment) can give you more returns but it does carry high risk as well. Diversification is a basic concept of financial planning and fixed income products come in handy to help us achieve this objective. Let us see what are the different types of fixed income securities and how they help savvy
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1. In the excel worksheet‚ we combined the 12% non-callable bond maturing in May 05 and the zero coupon STRIPS with the same maturity to get a synthetic bond with semiannual interest payments of $4.125 per $100 par value. The ask and bid prices of the synthetic bond are calculated to be $98.78 and $98.53. Alternatively‚ we combined the non-callable bond maturing in 2000 and the STRIPS 00 to get a synthetic bond to match the callable bond if it was called at the first possible date. The ask and
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This fixed asset will give insight for Longhaul Carriers‚ owned by Jimmy Mavela. Longhaul Carriers is a transport company that transport goods between Durban and Johannesburg. The company has three heavy-duty trucks and employs three drivers who either work day or night shifts. This report will cover fair remuneration for drivers‚ working hours‚ maximise earnings‚ profitability and effective control for the future of Longhaul Carriers. Fair remuneration for drivers Calculations:Drivers remuneration
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Depreciation of Fixed Assets Depreciation A business may acquire fixed assets such as land‚ buildings‚ machinery‚ office equipment‚ delivery equipment and natural resources (e.g. a piece if mining land)to help in the process of its operations to earn revenue in order to make a profit. Such assets‚ by their very nature‚ provide benefits to the business for more than one financial year or period. In fact‚ when a business buys a fixed asset at a certain cost (say $10‚000)‚ it is actually buying
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1. What is the WACC for Marriott Corporation? Cost of Debt Tax Rate We determined this number by taking income taxes paid/EBITDA = 175.9/398.9 = 44.1% Return on debt There are two clear components of debt: fixed and floating. In order to get the fixed debt rate we took the interest rates on fixed-rate government securities and added the premium above the
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operating units of Polysar Limited. The primary users of its products‚ such as butyl and halobutyl‚ are manufacturers of automobile tires; other users are from various industries. In 1986‚ Rubber group contributed 0.8 billion which is 46 percent of the company annual sale. The operation of the group is divided into four divisions‚ NASA (North America and South America) and EROW (Europe and rest of the world)‚ Research department and Global Marketing department. NASA and EROW operate as profit centers each
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CHAPTER 6 PRODUCTION EXERCISES 4. A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes. How might information about this function (such as the shape of the isoquants) help the campaign manager to plan strategy? The output of concern to the campaign manager is the number of votes. The production function has two inputs‚ television advertising and
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1. What is the weighted average cost of capital for Marriot Corporation? Briefly outline the key assumptions that you made in computing the WACC. 2. What is the cost of capital for the lodging and restaurant divisions of Marriot Corporation? Briefly outline the key assumptions that you made in computing the cost of capital and outline any limitations that are presented by your analysis. 3. If Marriot uses a single company-wide cost of capital for evaluating investment opportunities in each of its
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