ACCO 310 Lecture Notes - Lecture 4: Current Liability, Social Capital, Retained Earnings
19 Mar 2017
School
Department
Course
Professor
Document Summary
194: approved plan to dispose of the division, a major part of the enterprise, before fye within 12 months, fv-cost to sell = million, tax rate of 25% (fye may 31, 2017) Reclassification assets held for sale (stop depreciation) Where does the difference go? ( million) impairment loss. Bv (does not change due to depreciation expense stopped): million. Loss on operations of division (,750,000) (,500,000) (,250,000) - assets held for sale for 2018 is sh, but restatement for 2017 will have ,000,000. Income statement: (discontinued operations are net of tax) Loss on impairment of assets held for sale. Sho(cid:449)s ho(cid:449) the (cid:449)ealth of the fir(cid:373)"s shareholders e(cid:448)ol(cid:448)ed duri(cid:374)g the year. Equity: profit or loss, oci in oce, transactions with owners (dividends, social capital, change in ownership interests) Uses of financing (liquidity) = sources of finance (financial structure) solvency. Retained earnings is a source of finance generated internally by assets. Remove ,000 from buildings (put back to cost)
