Accounting Report: Financial Statement Analysis of Hydan Co. 2017

This report presents a financial statement analysis of Hydan Co. for the year 2017. It begins with an executive summary and table of contents, followed by an introduction that outlines the scope of the report. The report delves into the journal entries, comprehensive income statement, and balance sheet. It also explores the concept of depreciation, detailing the factors influencing the useful life of assets. Additionally, the report compares and contrasts the cost and revaluation models as per IAS 16, highlighting the implications of each method. The conclusion summarizes the key findings and allows the company to choose their preferred valuation method. The report also includes a list of references.

Running head: FINANCIAL STATEMENT
Financial Statement
Name of the Student
Name of the University
Author note

1
FINANCIAL STATEMENT
Executive Summary:
The objective of this report is to prepare the financial statements of Hydan Co. for the year 2017.
The report focuses on highlighting the difference between the two valuation models (cost and
revaluation model). The purpose of depreciation, along with the factors affecting the useful life,
is also discussed in the paper.

2
FINANCIAL STATEMENT
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Part (a).........................................................................................................................................3
Part (b).........................................................................................................................................4
Part (c )........................................................................................................................................5
Part (d).......................................................................................................................................10
Part (e )......................................................................................................................................11
Conclusion.....................................................................................................................................11
References:....................................................................................................................................12

3
FINANCIAL STATEMENT
Introduction
This report aims to prepare the financial statement of Hydan Co. as on 31st December
2017 and discusses the revaluation model and cost model for recording PPE as per IAS 16.
Discussion
Part (a)
The journal entries are stated below:

4
FINANCIAL STATEMENT

5
FINANCIAL STATEMENT

6
FINANCIAL STATEMENT
Part (b)
The “comprehensive income statement” of the company is as follows:

7
FINANCIAL STATEMENT
Part (c )
The balance sheet is presented along with Notes to Financial Statements presented below:

8
FINANCIAL STATEMENT

9
FINANCIAL STATEMENT

10
FINANCIAL STATEMENT

11
FINANCIAL STATEMENT