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F. Naz
F. Naz, Chartered Accountant
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Identify a company in your community or area that must account

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Identify a company in your community or area that must account for at least one of the following assets; natural resource; patent; lease; leasehold improvement; copyright; trademark; or goodwill. You might find a company having more than one type of asset. Once you identify Wal-Mart with a specific asset, describe the accounting this company uses to allocate the cost of that asset to the periods benefited from its use
Submitted: 5 years ago.
Category: Homework
Expert:  F. Naz replied 5 years ago.

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Customer: replied 5 years ago.
I could not find a link to open the answer. CAn you resend the answer to my email address. thanks
Expert:  F. Naz replied 5 years ago.
The answer is already on the screen, the link is only for reference puurpose,to se the annual report of Wal Mart
Customer: replied 5 years ago.
I have to come up with 200 word answer. You just gave me only a 60 word answer that is incomplete. I am not satisfied with your answre.
Expert:  F. Naz replied 5 years ago.
It is not mentioned anywhere abnout word count initially, but i will provide you with the 200 word counts, by what time do you need it thanks.
Expert:  F. Naz replied 5 years ago.

Leasehold improvements are depreciated over its useful life or the remaining period of lease terms whichever is shorter. The company had Property under capital lease amount to $5905 million at the end of Jan 2011 and $5669 million at the end of 2010. The amount of amortization at the end of Jan 2011 was $3125 million and $2906 at the end of Jan 2010. It means that company has recorded usage of this type of asset amount to $219 million. Total net assets under this category purchased during the fiscal year ended Jan 2011 amounted to $236. Therefore net increase in this category amounted to $17 million.

Goodwill is recorded for the difference in purchase price and the fair value of the net assets of the business purchased. However, the goodwill is not amortized and there is no allocation is made for its use as the life is for indefinite period. As the company does not record any amortization but they are evaluated in the fourth quarter of fiscal year, to decide about the impairment of goodwill. The balance of goodwill was 16763 at the end of Jan 2011 as compared to 16126 for 2010. It may be due to buying of new business or increase in the value of goodwill recorded earlier.

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