Cemig (NYSE: CIG) is a good just to illustrate that emerging-market utilities don’t always offer that higher growth/lower volatility blend that investors often seem to expect. There are certainly a great deal of company-specific challenges for Cemig, including a continuing fight over keeping concessions to three sizable hydropower generating assets, intense cost reduction assistance, and concerns that management is pursuing low-return investments. On top of those, Cemig faces hydrology risks, political uncertainty, and financial risks in Brazil. Since my last piece on March 20, these shares have been fairly volatile – jumping almost 50% (for the neighborhood shares) before a nearly 25% sell-off.
Example, the cost of the mission is just about USD1,000. The entity may improve to its staff amount USD 1, 000, and the accounting records will be credit cash on hand or bank or investment company and debit advance loan. The amount of advance loan shall show exceptional until staff settles the advance. Normally, staff required to bring the original invoices to verify what they spend are for the right purpose and amount.
Short-term staff loan is also types of current resources. It varies in one company to another. Some company desires to motivate their staff plus they allow their employees to borrow the company’s money for a brief term period like three to half a year. When the short-term loan offers to the staff, the business need to documents this amount of the outstanding loan in the entity financial claims under the correct resources section.
The company might consider the loan on another management account for managing purpose. Accounting record for these transactions is simple. We move the quantity of the loan from cash in the lender or on hand to short-term staff loan. In case the loan is several years, then that area of the loan should be classified as long-term assets.
- ▼ August 2008 (10) IAS 1 Presentation of Financial Statements, the Pr
- ► March 2015 (4)
- Contingent interest
- Calculate income to last a lifetime
Accounts receivable is the kind of current assets because they are expected to collect within one year. This happens when the entity offers goods or services to its customers on credit and the period of credit is at one year. It depends upon the entity policies. Some entity gives thirty days, some give 60 times. As long as this credit period is less than one season, we class it into current resources.
The accounting record Accounts receivable is easy. In the right time of purchasing, we just record debit AR and Credit Sales. And at the time of payment, we transfer from AR to Cash or Bank or investment company just. Inventories are current assets. Normally, for the creation company, there three types of inventories. Raw material, Work in end and progress goods. The raw materials is exactly what the ongoing company buys from its suppliers. Work in progress is the type or kind of in-progress goods and the cost normally combine from raw material, labor, and other direct overhead. Finish goods are completed products that ready for sales.
In the total amount sheet, inventories are recorded under the current assets section in one line and the description will be shown in Noted to Financial Statements. Inventories are classified as current resources, however, the process that takes to convert into cash might be much longer than others kind of currents property like cash on hand, cash in the bank as well as accounts receivable.
The variety of inventories by the end of the specific period is shown on the balance sheet. Inventories will record recognize as cost of goods sold or expenditures in the time that they are sold or used. There are plenty of kinds of pre-paid expenses. For example, prepaid interest expenditures, prepaid insurance expenses, as well as prepaid rent.