Lecture 5 - depreciation and non current assets

Question 1

why is it important that companies publish correct and accurate balance sheet i.e why does the international accounting standard step in

Answer 1

shows us total value of all assets of the company they currently own

investors don’t have direct comm with the company so looking at the balance sheet can assets - the total value of assets is the proxy/estimate for size of the firm - so bigger/more assets = investors want to invest in

is info untrue about their number lead to investors making bad descisions as a result of being lead by the wrong information.

Question 2

nca means … and this also means … but what are we focusing on

Answer 2

fixed asset - also means - tangible assets (can include intangible) but in this unit focus on tangible

Question 3

what are the two ways to value NCA

Answer 3

historical accounting

fair value (lol do we just no do this ? email 1)