BUSS1030 Lecture Notes - Lecture 6: Contingent Liability, Finance Lease, Operating Lease

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: All

Document Summary

Buss1030 lecture 6 statement of financial position (balance sheet) Always (cid:862)as at(cid:863) at a point in time. Control the assets, e. g. lease not only can buy assets. Operating lease have to return the asset back. Finance lease can buy the asset back. Vertical format need to show a - l = oe. Horizontal format mostly used by small businesses show a = l + oe. Going concern continue in operation for the foreseeable future (no intention to close business/significantly reduce size of operation) use historical costs. Otherwise, value assets in current market value. Impairment opposite of increase, sometimes value of assets falls. Amount of loss must be written down for an asset (similar to depreciation) Not useful written down as an expense. Current assets (can be easily converted into cash within 12 months) Cash & cash equivalents include cheque, credit cards (most liquid) Order from most liquid to least liquid.