Refer to the extracts from annual report 2005-06 of the Whirlpool of India Limited regarding its fixed assets, related significant accounting policies and profit/loss on disposal thereof as illustrated in this chapter. Having gone through the information provided therein, answer the following questions:
1. Has Whirlpool made the disclosures related to fixed assets and other incidental matters (except depreciation) in accordance with the GAAP requirements? (Skip intangible assets, note no. 2 on depreciation and note no. 5 on assets under finance lease, as covered in schedule ‘E’, “and revaluation”at this stage. These issues have been covered in the chapters that follow).
2. Has Whirlpool followed correct accounting policies in respect of fixed assets, grants and borrowing costs?
3. How much sale consideration Whirlpool might have realized during 2005–06 on assets disposed off ?