Fixed Assets Hp

Included in the furbish up assets are all the buildings, land, equipment, machinery and all improvements to capital subscribe tos. The guild uses the straight-line method of wear and tear, and the put in derogation increase by 15% from 2009. As stated on the parameter of cash flows HP invested $4,133 million on restore assets in 2010 compared to the $3,695 million in 2009. However, its questionable to whether the enthronement was adequate to replace its aging assets given that the total derogation expense for the division was $3.3 billion in 2010, and the total accumulated disparagement was $11,164 million nearly 50% of the gross apprize of the depreciable assets, therefrom is safe to assume that half of the estimated useful lives of the depreciable fixed assets stomach already been expensed. It isnt clear as to what the schema of the company is regarding the replacement of its fixed assets; even it is noted on the divine revelation section of their annual report that the company has many commitments that entangle leases for many of its real estate and ain position. HPs leases are non-cancelable operating leases, and many bespeak payments for taxes and property restitution not included on the lease payments.

The company pay its leasors $1,062 million in 2010 compared to the $1,112 in 2009, however it subleased some of the property and received $46 million and $53 million, in 2010 and 2009 respectively. It is worth(predicate) noted that following the closing of the fiscal year 2010, in November, as part of the companys scheme to merge its real estate locations worldwide, it sold land and buildings for nearly $415 million, which generated a gain of $280 million. To greater understan! d and analyze HPs fixed assets strategy and performance the following concerns would shoot to be addressed: * The choice for any method of depreciation is commonly related to the companys overall strategical plan. It would be worthwhile for HP to explain on their disclosures the reason...If you essential to loaf a full essay, order it on our website: OrderEssay.net

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