Tangible Fixed Assets and Leasing: Valuation and Accounting
Tangible Fixed Assets
Initial Assessment
Tangible assets are measured at the purchase price or production cost. Indirect taxation of these goods will only be included in the purchase price or production cost if they are not recoverable.
The initial estimate of the present value of obligations associated with decommissioning, such as costs of remediation of the site on which it stands, will be part of the value of the property, provided that such requirements will lead to registration in accordance
Read MoreKey Financial Terms and Accounting Principles
Net Income
Net Income is the residual amount of earnings after all expenses have been deducted from sales. In short, gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included.
Net Sales Calculation
Net sales is total revenue, less the cost of sales returns, allowances, and discounts. This is the primary sales figure reviewed by analysts when they examine the income statement of a business.
Statement
Read MoreEconomic Agents and Decision-Making Factors
Economic Agents and Their Decision-Making Processes
Factors Influencing Economic Decisions
Economic agents make decisions when they are free to do as they wish. The State intervenes only when there are serious problems or defects to be corrected. But how do all economic actors coordinate to make the economy run smoothly?
- Economic rationality: Minimize opportunity cost.
- Action: Agents act.
- Incentives: Leverage incentives.
It is generally accepted that when agents act seeking their individual benefit, they
Read MoreFinancial Services Industry: Insurers, Agents, and Brokers
Changes in the Financial Services Industry
The financial services industry has undergone significant changes, including:
- Consolidation: The number of firms has declined due to mergers and acquisitions.
- Convergence: Financial institutions now sell a wide variety of financial products that were previously outside their core business area.
Types of Private Insurers
In 2010, the insurance market comprised:
- Life and Health Insurers (1061): These insurers sell life and health insurance products, annuities,
Key Economic Indicators and Concepts: Definitions and Impacts
Nominal Gross Domestic Product (NGDP)
NGDP measures the total value of goods and services produced in an economy at current prices, without adjusting for inflation.
Real Gross Domestic Product (RGDP)
RGDP measures the total value of goods and services produced in an economy, adjusted for inflation using base-year prices.
Unemployment Rate
The unemployment rate is the percentage of the labor force that is unemployed and actively looking for work.
Problems with the Unemployment Rate
The unemployment rate
Read MorePricing Strategies and Distribution Channels in Marketing
Understanding Pricing in Marketing
Price is the amount of money a person needs to obtain a product or service. All products and services have associated costs, including those offered for free. In marketing, pricing focuses on the “how” and the consequences of this criterion.
Types of Prices
- Gross Price: The price before discounts are applied.
- Net Price: The price used when offering two or more products or services together.
- Discount Price: The price perceived by the consumer as indicating a lower-quality