You are required to provide a written response which highlights four specific items in alphabet plc’s balance sheet that might require adjusting to arrive at an economic value. For each item, explain the type of adjustment and the type of information that might be required before an adjustment could be made to arrive at an economic value for alphabet plc at its 2015 financial year-end.
Fixed assets
Fixed asset investments 27,426
Current assets
Debtors – other 15
Debtors – amounts owed by Group undertakings 7,303
Creditors: Amounts falling due within one year
Non-trade creditors (1,467)
Interest-bearing loans and borrowings (912)
(2,379)
Net current assets 4,939
Total assets less current liabilities 32,365
Creditors: Amounts falling due after more than one year
Amounts owed to Group undertakings (283)
Interest-bearing loans and borrowings (7,889)
(8,172)
Net assets 24,193
Capital and reserves
Called-up share capital 316
Share premium account 4,261
Capital redemption reserve 153
Other reserves 2,754
Profit and loss account 16,709
Shareholders’ funds 24,193