Assets are an important part of any business or organization. Assets are resources that add value to the business, fund daily operations and are used to pay expenses that have been incurred by the organization. Assets are listed on the balance sheet of an organization’s financial statements, which can be used for decision making by owners, management, investors and creditors of an organization. There are two different classifications of assets recognized on the balance sheet: current and noncurrent
Assets play an important role in the daily operations of an organization. Assets are considered resources that add value to the business, fund daily operations and are used to cover expenses that have been incurred by the business or organization (Asset, n.d.). Assets are listed on the balance sheet of an organization’s financial statements, which can be used as a decision making tool by owners, management, investors and creditors. There are two classifications of assets recognized on the balance
One area in particular is with accounting for intangible assets. In the business sector, assets are important economic resources and are classified as either tangible or intangible. Tangible assets are easily seen as physical objects that include items such as buildings, machinery, vehicles, and fixtures. Because of their nature, tangible assets are straightforwardly accounted for on financial statements. However, intangible assets cannot be seen and when it comes to accounting for them, a
2.1 Asset Management According to () asset management refers to the methodical incorporation of radical and sustainable management procedures into a body of management practices with a primary focus on the long-term life and sustained performance of an asset. It aims on reducing all total costs in acquiring, operating, maintaining, disposing and renewing assets as well as the risks that are associated with that whole process (). 2.2 State Assets According to () state assets refer to any asset that
Asset Valuation Accounting for Managerial Decision-Making Introduction To start a new business and remain in business profitably, many critical decisions must be made when the foundation of a new business is formed. These decisions affect the company in the long run and often make or break an organization. Methods of inventory control and capitalization policies are among these critical decisions that will affect any business bottom line. Our team has investigated these policies and will present
Human assets and whether there should be a value on humans has been a controversial issue in the recent years. Some individuals have argued that humans could be classified as assets because humans are a valuable resource of a business and placing value will help indicate importance to managers in order to cultivate the asset. However, others may object to the idea that humans are assets as this could be seen as demeaning; being listed alongside other business assets including inventory, plant and
Background 2 1.2 Maxis Berhad Background 3 2.0 The Liquidity And Asset Management Ratios 5 2.1 The Liquidity And Asset Management Ratios Digi.Com Berhad 6 2.1.1 Liquidity Ratio 6 2.1.2 Asset Management Ratio 7 2.2 The Liquidity And Asset Management Ratios Maxis Berhad 8 2.2.1 Liquidity Ratio 8 2.2.2 Asset Management Ratio 9 3.0 Comparison of the Companies’ Liquidity And Asset Management Ratios 12 3.1 Liquidity Ratio 12 3.2 Asset Management Ratio 14 4.0 Conclusion 17 5.0 References 18 Appendices
Part 1: Theory on control of assets 1) Internal controls are methods that a company puts in place to ensure the integrity of financial reports and accounting information, and that they meet operational and profitability targets. They are implemented to assure the safe-guarding of assets as well as to detect fraud and any other errors. As such, they provide the company with reasonable assurance that specific objectives will be achieved. 2) The overall purpose of internal controls is to help a
create competitive advantage, various firms invest a significant portion of their capital in intangible assets (Goldfigure, 1997) such as the technology and science oriented firms. Investment in intangible assets, for example patents, Human Resource, differs from investment in tangible assets along several aspects related with information asymmetry (Abuja et al, 2005). First, many intangible assets are unique for each firm (Aboody and Lev, 2000), such as brand name, which does not share common characteristics
Accounting for Transfers and Servicing for Financial Assets and Extinguishments of Liabilities SFAS 140 is a replacement of the FASB’s Statement 125 Accounting for Transfers and Servicing of Financial Assets and Extinguishments of liabilities. “This statement provides accounting and reporting standards for accounting transfers and servicing of financial assets and extinguishments of liabilities. Those standards