Assignment: U.S. Companies And Foreign Companies Are Affected By Deprecation Rule
According to the textbook, U.S. companies and foreign companies are affected by deprecation rules. When companies write off the cost of long-lived assets over a period of time, the term used is depreciation.
In order to complete this assignment, review Delta Airlines' annual reports for the years 2012 and 2013.
Write a 4 pages paper in which you:
Briefly outline Delta Airlines company's history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Prepare a horizontal analysis of Delta's property, plant, and equipment for 2012 and 2013. Next, calculate the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Based on your calculations, indicate the conclusions that you can draw, based on the changes in property, plant, and equipment.
Determine the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Suggest three alternative methods that Delta Airlines could use in order to depreciate assets. Based on your suggestions, propose the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment. Provide a rationale for your response.
Analyze the information disclosed in Delta Airlines' notes to their financial statements on property, plant, and equipment. Recommend additional data that Delta Airlines could include that would be useful to potential investors and creditors.
Use at least three quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
The specific course learning outcomes associated with this assignment are:
Demonstrate, analyze, and explain the proper accounting for acquisition and valuation of property, plant, and equipment; valuation; costs subsequent to acquisition; and disposition of plant assets.
Demonstrate, analyze, and explain the proper accounting for depreciation, impairments, and depletion.
Use technology and information resources to research issues in intermediate accounting.
Write clearly and concisely about intermediate accounting using proper writing mechanics.