Accounting policies-notes to the accounts, Financial Accounting

Accounting Policies

These financial statements have been prepared under the historical cost basis of accounting which is modified to accommodate the revaluation of certain property, plant and equipment.

Property, plant and equipment are stated in the accounts of cost or revalued amount less accumulated depreciation. Depreciation is based on the estimated useful life of the asset and is provided at the following rates:

Assets                                         Rate
Land                                       No depreciation
Buildings                                 2 % on cost
Plant and machinery                 20% on cost
Fixtures, furniture and fittings    25% on cost
Motors vehicles                        30% on reducing balance

Inventory is stated at the lower of cost and net realizable value. Cost represents the purchase price or production cost and other expenses incurred to get the inventory ready for sale. Net realizable value is the selling price of the inventory less other expenses that will be incurred to get he inventory ready for sale.

Posted Date: 12/12/2012 12:13:39 AM | Location : United States







Related Discussions:- Accounting policies-notes to the accounts, Assignment Help, Ask Question on Accounting policies-notes to the accounts, Get Answer, Expert's Help, Accounting policies-notes to the accounts Discussions

Write discussion on Accounting policies-notes to the accounts
Your posts are moderated
Related Questions
Q. What is Asset? Asset - An economic resource which is expected to be of benefit in the future. Probable futureeconomic benefits attained as a result of past transactions or e

The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. 10 marks Summer 2013 Sundry Debtors Rs.160000 Bad Debts written off Rs 9000 Dis

the salaries paid in 2004 is rs. 500000 salaries outstanding is rs.20000 salaries paid in advance for 2004 is rs 30000 what is the actual salary expenditure for 2004?

On 1 January 2008, a young artist called Michelangelo signed a contract with a charity named Art Angels, which supports young artists to do large projects. The agreement requires M

GROUP STRUCTURES A group structure is the relationship between the holding company and its subsidiaries.  There are normally four main types of group structures (apart from the

HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL

what is consolidation and its features?

Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid

Analyse the limitations of using a periodic inventory system and provide examples to support your view. essay type

Limited Liability Company (LLC) - Form of doing business combining limited liability for all owners (known as members) with taxation as a PARTNERSHIP. An LLC is formed by filing AR