Fixed Assets Hp

Included in the frozen(p) assets are all the buildings, land, equipment, machinery and each improvements to capital films. The guild uses the straight-line method of wear and tear, and the salt away dispraise increase by 15% from 2009. As stated on the parameter of cash flows HP invested $4,133 million on amend assets in 2010 compared to the $3,695 million in 2009. However, its questionable to whether the investiture was adequate to replace its aging assets given that the total depreciation expense for the course of instruction was $3.3 billion in 2010, and the total accumulated depreciation was $11,164 million nearly 50% of the gross honor 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; nevertheless 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 ad hominem position. HPs leases are non-cancelable operating leases, and many get hold of 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 strategy to merge its real estate locations worldwide, it sold land and buildings for most $415 million, which generated a gain of $280 million. To greater understand and analyze HPs fixed assets strategy and performance the following concerns would throw 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 dis! closures the reason...If you wishing to loaf a full essay, order it on our website: OrderEssay.net

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