Saturday, 15 March 2014

Clarkson PLC: 3 Assets, 3 Liabilities & 3 items of Equity and my KCQs

Assets

1. Property, plant and equipment (non-current assets)

One of assets that is important to operate business that cannot be liquidated easily.  In addition, these assets are tangible and fixed.  Ex) land & its improvements, building, vehicle, plant & machinery, equipment and more.

2. Intangible assets (non-current assets)

These assets are not tangible.  These assets are an entity's intellectual property such as goodwill, copyright, patents and business knowledges. 

3. Trade and other receivables (current assets)   

Receivables are a current assets that are possible to earn cash soon by customers and debtors. 

When I read this company's balance sheet, I was wondering about some points.
This company balance sheet shows firstly non-current assets.  Why? I think that nomally current assets are shown first???

Liabilities

1. Trade and other payables (current liabilites)

This is oposite receivable.  Payable is a liability that money is owed by an entity.  In addition, they are paid soon for creditors. 

2.  Provisions (current and non-current liabilities)

This is an liability which is uncertain timing and amount. 
Why they have current and non-current???

3. Deferred tax liability (non-current liabilities)

Accounting is using accural accounting method that all transactions have to be recorded unless cash flowing.  However, tax is not using this method.  Tax is using cash basis.  Therefore, there are differences beween accounting record and tax.  The differences are deferred tax liability. 

Equity

1. Share capital

This is an equity for the entity's fund rising by issuing shares. 

2. Other reserves

Reserves are money for uncertainty economic conditions such as foreign exchange, hedging and more.

3. Retained earnings

Retained earnings are left over from net assets to share capital and reserves.


I am interested in my company’s assets and liabilities and equity.  When I read their balance sheet, I found an interesting point that this company’s intangible assets are big.  I read the asset’s footnote.  This company provides a lot of services such as dry bulk and gas chartering, sale and purchase broking, port and agency service, research service and investment service.  All these services are their intangible assets.  I thought these services are very special skills.  It is cool.  Also, the asset is an important point for their business, I think. 





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