Finance accounting Essay Example | Topics and Well Written Essays - 1500 words

Finance accounting - Essay ExampleLastly, the reserves of the company is estimated and their modes of drill so that the write-down of the company can be avoided. Impact of Australian Accounting Standards When the sack achievable appreciate for all of the subsequent period. Due to a certain circumstances the inventories of the company needs to be written down below the cost that no longer exists or with the evidence related to the net realizable value caused as a result of the changed economic circumstances (Walton & Aerts, 2006, p.120). This leads to the reversing of the write-down where the amount if curb to original write-down, so much so, the new carrying amount of the company will be lower than the rewrite net realizable value along with its associated cost. With the selling of the inventories the carrying cost of the inventories is treated as the expense in the period in which the revenue is recognized. This result in the written down value of the memorandum is considered as the cost or occurrence of losses. The concept of reversal write-down value generally occurs from the increase in the net realizable value of the concerned company which is recognized as a fall in the amount of inventory as an expense in the period of reversal write-down occurrence (Johnston & Johnston, 2005, pp.62-63). blow write-down The concepts of the reversal write-down infra the Australian Accounting Standards will have a dandy impact on the current situation of BHP Billitons US Shale Gas assets related to the financial statements of the company. The inventory cost of the company will reduce thus reducing the carrying cost of the Shale Gas assets to a odd extent. Thus the increase in the net realizable value of the company will be project at a low rate than now. This in turn will lower the intrinsic value of the company resulting in the military rank of the company being similar to the market value of the company or lower than the market value. Hence the company will b e in the condition to revive of the preface condition to a certain extent (Australian Government, 2009, p.17). Current and non-current assets and methods of valuation Yes, the current and non-current assets of the company, BHP Billitons have been value in the financial statements of the company. The income and the deferred tax of the company accounted under the head of other assets of the company has taken the allowable temporary differences resulting in the deferred tax of the company amounting to US$3119 million as against US$2195 million in 2010. These amounts have not been recognized due to the probable future taxable profits as the deductible temporary differences do not expire under the tax legislation. The trade receivable of the company is the considered as the impaired assets of the company. All the financial assets of the company are computed at the fair value price under the consideration of payment and receipt. The fair value method is the not a completely independent carry through. It is establish on the results of weighted average value of the items of the company. In spite of providing a balanced figure of valuation yet its limitation the valuation of the business model still persists. However, the fair value accounting process conveys important information related to