Clarity on Accounting Issues: Depreciation, Impairment, and Revaluation

HEWLETT-PACKARD
CLARITY ON ACCOUNTING ISSUES
Accounting issues
Name of author

Table of Contents
The difference between depreciation, impairment and revaluation losses................................2
What impact these charges will have on profitability?..............................................................2
Why the changes are required for depreciation, impairment and revaluation?..........................3
What disclosures are necessary for these changes?...................................................................4
How we could otherwise report on performance without upsetting the managers?..................6
REFERENCES...........................................................................................................................7

Letter
Mr Peter Pepper
The Managing Director,
Pepper Limited,
Level 5, 49 William Street,
Brisbane QLD 4000,
Dear Sir,
CLARITY ON ACCOUNTING ISSUES
Having read your email and understanding your concerns, I am addressing all the technical
issues and discussions in the attachments ahead. As per your requirement of assisting the
accounting team, appropriate references have been made. The changes that have been faced
by the operational managers have been understood well to identify the depreciation and
impairment issues. The changes introduced by the working of the new management
accountant have been perceived.
In order to ease your situation, the attachments have included the explanations about the
different concepts of depreciation, impairment and revaluation. This will help in identifying
the true and fair view of the assets and liabilities recorded in the books of account of
company. The disclosures are given to strengthen the transparency of the report. This will not
only not only assist in implementing the proper functional program but also strengthen the
overall outcomes and efficiency of busienss.
Hope all your queries shall be solved. We are looking forward to hear from you shortly.
Sincerely,
Accountant
Montana and Associates
696 George Street