ADVANCED CORPORATE REPORTING

Advanced Corporate Reporting

Advanced Corporate Reporting

Introduction

This paper will focus on the measurement of tangible non-current assets using annual reports of FTSE 100 companies. The companies that have been chosen for these purposes are Tesco's, Sainsbury's, Marks and Spenser's.

Discussion

Non Current Assets

IFRS 5 is related to the Non-current assets that are held for sale, and displays the present information on those assets and discontinued operations separately on the balance sheet and income statement, respectively. They are not depreciated rather they evaluated on lower expressing mount & fair value deducting cost to sell presented separately in the balance sheet (Shanklin, Hunter, Ehlen, 2011, pp. 23).

In addition to the above condition, the active ingredient must meet the following requirements:

Position of Immediate sale.

Highly probable sales and it must address commitment of the company regarding sale of assets, initiating a program where a buyer will be located for completing the plan.

The sale must take place at a reasonable price, according to their current fair value.

Fair value: A price at which an asset could be exchanged between a willing buyer and a knowledgeable, willing seller normally a fair deal.

Historic cost: The cash paid otherwise equivalent cash or other consideration fair value specified or should have been specified to obtain property at acquisition time or production (Holt G., 2012, pp. N/A).

FTSE 100 Companies Illustrate

Noncurrent assets of Tesco valued £35,167 in 2011 while it was £37,918 in 2012 i.e. 7.8% increased from last year. This is due to the Proceeds that were from sale of property, plant and equipment, investment property and these were termed as held for sale. This was 1,141 in 2012 while it was just 1906 in 2011. In 2012, Tesco Noncurrent assets that were held for sale were 445 in 2012 while it was 431 in 2011. There was an enhancement in this area due to the properties that was sold in UK and Thailand in 2012.

There was a change in fair value of the non-current asset held for sales with was 13 in 2012 and 2 in 2011. Hence, this was due to the market conditions. Moreover, there was an increased in Non-current asset for the reason that properties and noncurrent as from discontinued operation in 2012 increased compared to 2011. If we see IFRS 5 rules, Tesco is completely following these rules, they have stated their non-current asset as held-for-sale on its carrying amount, which is expected to be recovered in the future. Historical cost of non-current assets has not mentioned in the annual report (Tesco Annual report, 2012, pp.92).

As far as Sainsbury is concerned, noncurrent assets in 2011 was £ 8,770 while in 2012 it was £8,685, this is increase from last year because they increased their subsidiaries investment in 2012. Moreover, there were non-current assets held for sales in 2012 while there was about £13 million noncurrent assets associating to properties that were held in retailing segments (Sainsbury annual report, 2012, pp. 70).

Marks and Spencer non-current assets are concern, in 2012 non-current ...