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Segmental information relating to Turner plc for the year to 30 April 2015 is: Required: Analyse the

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Segmental information relating to Turner plc for the year to 30 April 2015 is:

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Required:Analyse the performance of each of the three main business segments for the year and comment on your results.

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Software Electronics Engineering Total £m £m £m £m Revenues from external customers 250 230 52 532 Inter-segment revenues 45 25 70 Interest revenue 18 18 Interest expense 25 25 Depreciation Reportable segment profit 60 35 10 105 10 34 12 56 Other material non-cash items: Impairment of assets Reportable segment assets Expenditures for reportable segment 5 5 34 264 140 90 22 12 10 44 non-current assets Reportable segment liabilities 55 38 4 97 LO

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Software The software segment reported revenues of 5 32 from external customers and 70 in inter se g...View the full answer


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Accounting and Finance An Introduction

Accounting and Finance An Introduction

ISBN: 978-1292088297

8th edition

Authors: Peter Atrill, Eddie McLaney

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Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.

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