 |
09-09-2008, 09:20 PM
|
#1
|
|
Confused about dryer sheets
Join Date: Feb 2008
Posts: 5
|
Depreciation Methods
For an accounting class, we are reviewing the 2007 annual report for Starbucks and a question was asked regarding how to identify the depreciation method that is used. I know that there is more than one method, I just don't know how to figure out which method is used by a particular company. Any of you accountants out there have an answer? Thank you in advance for your replies.
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
09-10-2008, 06:42 AM
|
#2
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
|
Read the footnotes to the annual report may help. Or if you have all the numbers calculate each method and see which one hits the depreciation number. Spreadsheets are wonderful.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
|
|
|
|
|
09-10-2008, 09:30 AM
|
#3
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
 Quote:
Originally Posted by MountainMedic
For an accounting class, we are reviewing the 2007 annual report for Starbucks and a question was asked regarding how to identify the depreciation method that is used. I know that there is more than one method, I just don't know how to figure out which method is used by a particular company. Any of you accountants out there have an answer? Thank you in advance for your replies.
|
It's in the financials, sometimes they even name the method used. usually things like goodwill are amortized over long periods, even decades. For capital expenditures like plants and fixed assets, most companies try to depreciate as much as they can to maximize their bottom line depending on current tax laws.
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
09-10-2008, 12:20 PM
|
#4
|
|
Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
|
I did a quick search on the company's last 10-K and your answer is in there.
|
|
|
|
|
09-11-2008, 09:37 AM
|
#5
|
|
Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
|
Cough cough.... Straight line... cough
|
|
|
|
|
09-11-2008, 12:59 PM
|
#6
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
Quote:
Originally Posted by saluki9
Cough cough.... Straight line... cough
|
Or flat line, like the market appears to be........clinically dead......... 
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
09-11-2008, 05:17 PM
|
#7
|
|
Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 1,502
|
Quote:
Originally Posted by FinanceDude
It's in the financials, sometimes they even name the method used. usually things like goodwill are amortized over long periods, even decades. For capital expenditures like plants and fixed assets, most companies try to depreciate as much as they can to maximize their bottom line depending on current tax laws.
|
Goodwill can no longer be amortized. It is subject to a yearly impairment review.
Ah, it's after work, and you're bringing up my fav work topic -- accounting. I swear! 
|
|
|
|
|
09-12-2008, 10:03 AM
|
#8
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
Quote:
Originally Posted by BunsGettingFirm
Goodwill can no longer be amortized. It is subject to a yearly impairment review.
Ah, it's after work, and you're bringing up my fav work topic -- accounting. I swear! |
Well, it's been a LONG time since those accounting courses. "Impairment review" sounds ominous, as does "Sarbanes-Oxley"......... 
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
