FINANCIAL ACCOUNTING

Financial Accounting



Accounting - Analysis

Introduction

In IAS 1 - 2007 state the basis for the general purposes financial statements presentation. This is to ensure the comparability of both, the financial statements of entity of prior periods with the financial statements of the other entities. In this section, the entire requirement has been stated for the financial statements preparations along with the guideline for structure and minimum requirement for the company's content. There are standard when recognizing, measuring and disclosing the specific transactions in annual reports so that proper interpretation can be made. This paper will discuss the recognition, measurement and disclosure for non-current assets for the company. The company which has been chosen for this purpose is Burberry Plc.

Overview of the Company

Burberry is an exclusive, British fashion house, founded in 1856 by Thomas Burberry. This company involves in selling clothes, perfume and fashion accessories for men and women. In 1880 Thomas Burberry invented the world's first "breathable" waterproof fabric gabardine, named after the hiding place, occurring in the works of Shakespeare, in which it was possible to hide from the weather. The patented was acquired in 1888 of gabardine technology.

The company has specialized in manufacture of British Army outerwers. Protective clothing Burberry was equipped expedition Roald Amundsen to the South Pole. After the First World War clothing company became popular among the civilian population. In particular, the clothes were wearing Burberry characters such famous films as “Casablanca "and" Breakfast at Tiffany's "and some characters of the famous series "Agatha Christie's Poirot” (www.burberryplc.com).

Non-Current Assets in Burberry

Non-current assets are assets that are not converted into cash by a company in the year, and remains for over a year. Non-current assets also known as fixed assets are those that do not vary during the operating cycle of the company (or fiscal year). For example, the building where a factory mounted their products is a non-current asset that remains in the company during the process of manufacture and sale of products. A counterexample would be an estate: buildings that real estate buying to sell varies during the operating cycle and therefore part of current assets. At the same time, real estate offices are part of non-current assets (www.accaglobal.com).

Non-Current Assets in Burberry comprises of Intangible assets, Property, plant and equipment, Investment properties, deferred tax assets, Trade and other receivables and derivative financial assets. They are usually classified as held for sale.

Issues in recognition for non-current assets

The main issues that deal with the accounting for noncurrent assets are the recognition of the assets. Intangibles IFRS (IAS) 38 Intangible Assets defines an intangible asset as an identifiable non-monetary asset without physical substance. In addition, the company has been able to recognize an intangible asset in its financial statements, it must meet certain criteria.

The main issues that Burberry face is capitalization Issues, as according to the SFAC- 2 states that information and the items should meet the following:

Valid measurable attributes along with the sufficient reliability

The information should be capital enough while making decisions

The information that ...