1、Historicalcost Historical cost is a generally accepted accounting principle requiring all financial statement items be based upon original cost.Historical cost means what it cost the company for the item.It is not fair market value.This means that if a company purchased a building,it is recorded on
2、the balance sheet at its historical cost.It is not recorded at fair market value,which would be what the company could sell the building in the open market.In accounting,historical cost is the original monetary value of an economic item.Historical cost is based on the stable measuring unit assumptio
3、n.In some circumstances,assets and liabilities may be shown at their historical cost,as if there had been no change in value since the date of acquisition.The balance sheet value of the item may therefore differ from the true value.Historical cost Historical cost basis(original cost)lUnder the histo
4、rical cost basis of accounting,assets and liabilities are recorded at their values when first acquired.They are not then generally restated for changes in values.lCosts recorded in the Income Statement are based on the historical cost of items sold or used,rather than their replacement costs.The his
5、torical cost accounting is the situation in which accountants record revenue,expenditure and asset acquisition and disposal at historical cost:that is,the actual amounts of money,or moneys worth,received or paid to complete the transaction.The historicalThe historical cost accountingcost accountingA
6、lternativesAlternativesReplacement costsReplacement costslOne of the current asset valuelThe estimated amount that would have to be paid in order to replace the asset as the date of valuation.lA possible alternative to historical cost method.Advantage and disadvantageAdvantage and disadvantage advan
7、tage:it focuses on the services the asset will provide rather than the precise(古板的)physical asset.disadvantage:The costs have to be estimated so it is not very objective.It also does not provide the various choices and features that historical cost accounting has to offer.How is historical accountin
8、g better than alternatives?Historical cost is the standard form of accounting still.accountants are reluctant to price the assets at current market value.Under historical cost accounting there is no room for manipulation because the data is supported by evidence.with a significant range of alternati
9、ves in recognizing,reporting and measuring economic information.historical cost is based on recording actual transactions and the figures are reliable.Financial statements based on historical cost have been found to be useful.Gain from European location:European is famous for its tourism;Europe is n
10、ear the Middle East and AfricaDisadvantagesThe European found it harder than the Americans to raise money and recruit staff.In finance,European wanted to see proven assets and a proven cash flow。Hiring good staff proved to be another problem in EuropeLack of talent,Although Western Europe suffers fr
11、om 10 per cent unemployment technical staff such as Web designers is rare.the Americans had an advantage because portals are much less developed in Europe.The Europeans faced other mounting pressures.Their investors wanted to see a profit.Question 3What can European policy makers do to improve oppor
12、tunities available to start-up companies?What can US policy makers do to encourage the growth of such companies?FirstlyFirstlyFirstlyFirstly As having analyzed from the case,we see that European Rent-a-holiday is defeated by American VacationS,by contrast of ways in operating company,we find there a
13、re some differentiations which cause Europeans failures:FirstlyFirstlyFirstlyFirstly 1.At the beginning of the 1.At the beginning of the start-up period for the start-up period for the company,when facing the company,when facing the shortage of cash flows,shortage of cash flows,Europeans way is to r
14、aise Europeans way is to raise money in direct investment money in direct investment through cash,while through cash,while Americans prefer with Americans prefer with financial options.financial options.FirstlyFirstlyFirstlyFirstly 2.In the way of hiring employees,2.In the way of hiring employees,Va
15、cationS attracts more good VacationS attracts more good staffs three times than Rent-a-holiday.staffs three times than Rent-a-holiday.Due to the different nations Due to the different nations conceptions,Europeans prefer to a conceptions,Europeans prefer to a stable and comfortable welfare in stable
16、 and comfortable welfare in such a company like IBM while such a company like IBM while Americans like more challenges and Americans like more challenges and pressures.In addition,motivation pressures.In addition,motivation welfare policies differ from two welfare policies differ from two companies;
17、Americans consider more companies;Americans consider more on the employees salary and stock on the employees salary and stock options while Europeans do less options while Europeans do less consideration.consideration.FirstlyFirstlyFirstlyFirstly 3.As Internet possesses 3.As Internet possesses initi
18、ation,it is famous around the initiation,it is famous around the world and owns a lot of world and owns a lot of customers to search in,the customers to search in,the higher traffic is absolutely.Its higher traffic is absolutely.Its brand and potential goodwill is brand and potential goodwill is wel
19、l-known by the worldwide well-known by the worldwide users.However,for the users.However,for the Europeans ideas of investment,Europeans ideas of investment,they are concentrated in a rush they are concentrated in a rush profit instead of Americans long profit instead of Americans long term plan.ter
20、m plan.Secondly Then through the analyzed failures for Europeans,we can discuss what European policy makers can do to improve opportunities to start-up companies better,some innovative suggestions are given as follows:Secondly 1.Europeans policy makers can encourage the Portfolio investment,increase
21、 the profit like IRR or decrease the risk for investors from it,meanwhile,they can raise the debt rate for banks,and in this way,there is a lower profit in cash investmentSecondly 2.By the second failure,the makers can make the laws to force companies to increase salary and give a series of stock op
22、tions for employees.Then they can strengthen the education to develop more technological good staffs to satisfy companies demands.Secondly 3.In this tip,I think it relates to the brand,the European policy makers must aim to how to improve their domestic companies brand like import many good skills,u
23、sing the way of international licensing or franchising to attach to attract investors.ThirdlyWhen refers to US policy makers,as their weakness in the European market,they did have few listings.Since European investors are difficult to please and they prefer a rush profit,US policy makers should make an adaption into the local culture,force companies to have training for a overall knowledge of the European culture and make actions which they like.
©2010-2024 宁波自信网络信息技术有限公司 版权所有
客服电话:4008-655-100 投诉/维权电话:4009-655-100