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
Do you help with assignments?

effects of public debt on production, d

IAS 1 contents of financial statements IAS 1 prescribes the contents of published financial statements. The major reports that are included as part of the published financial sta

Determine the Various forms of business organizations There are various forms of business organizations: o Business-organization's objective is to earn a profit o Sole Pr

a. Create a worksheet in your excel file and name it "Part A Q2". In column A to E set up general journal and input the necessary journal entries to record the transactions and eve

Surviving Spouse - This is a person whose wife or husband died during tax year. A surviving spouse can file a JOINT RETURN for the year in which death occurred. Additionally a join


Four major qualitative characteristics of accounting information There are four major qualitative characteristics which influence usefulness of accounting information. Additio

define the term of pre-acquisition diviend

XYZ Corporation recieves $100,000 from investors for issuing them shares of its stock. XYZ's journal entry to record this transaction would include a a debit to investment b credit