Re: vu experts - Build Finance Field Concepts for ViVa-- Share Material Pls

The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.

Investopedia explains Amortization
Suppose XYZ Biotech spent $30 million dollars on a piece of medical equipment and that the patent on the equipment lasts 15 years, this would mean that $2 million would be recorded each year as an amortization expense.

 

While amortization and depreciation are often used interchangeably, technically this is an incorrect practice because amortization refers to intangible assets and depreciation refers to tangible assets

Read more: http://www.investopedia.com/terms/a/amortization.asp#ixzz1Y62Lhovf

 

Read more: http://www.investopedia.com/terms/a/amortization.asp#ixzz1Y62Bjrw4

 

Boojk Value

The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation

Read more: http://www.investopedia.com/terms/b/bookvalue.asp#ixzz1Y62mQook

 

 

What Does Residual Value Mean?
How much a fixed asset is worth at the end of its lease, or at the end of its useful life.

Read more: http://www.investopedia.com/terms/r/residual-value.asp#ixzz1Y63CirNc

 

 

What Does Declining Balance Method Mean?
A common depreciation-calculation system that involves applying the depreciation rate against the non-depreciated balance. Instead of spreading the cost of the asset evenly over its life, this system expenses the asset at a constant rate, which results in declining depreciation charges each successive period

Read more: http://www.investopedia.com/terms/d/decliningbalancemethod.asp#ixzz1Y63zD9rb

 

 

What Does Generally Accepted Accounting Principles - GAAP Mean?
The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information

Read more: http://www.investopedia.com/terms/g/gaap.asp#ixzz1Y64FhKnh

On Thu, Sep 15, 2011 at 9:12 PM, mc090401434 Hasnain Mehmood <mc090401434@vu.edu.pk> wrote:

Very Helpful Mateiral

 

Nida Superb Sharing

Thanx a lot

 

most of us have confusion in interpretation as there is no straight bench mark to the ratios.

 

Pls keep sharing such type of any mateiral you hav

Specially related to financial concepts as well like

what is amortization, book value, residual value, reduce balance method of depreciation, GAAP...?

 

As such kind of question may also be ask by the viva panel from you

 

Regards

Hasnain Mehmood

Wah Cantt

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Muhammad Zeshan Qaisar

MBA Finance IV

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