Below are 3 Assets, 3 Liabilities and 3 items of Equity of Siemens.
Assets:
Available-for-sale financial assets: the business’
intangible assets that are expected to be sold within a year. Included in the
value of Siemen’s available-for-sale financial assets are equity instruments,
debt instruments and fund shares.
Inventories: are the assets that the business intends to
sell in order to generate the majority of their profits. The items included in
the value of Siemen’s inventories are: raw materials and supplies, work in
process, costs and earnings in excess of billings on uncompleted contracts,
finished goods and products held for resale, advances to suppliers, less
advanced payments received.
Property, Plant and Equipment: is a vital company asset, as
it shows the value of ownership the company has with their property, buildings,
etc. It cannot be easily liquidated. The items that make up Property, Plant and
Equipment for Siemens are: Land and Buildings, Technical machinery and
equipment, furniture and office equipment, equipment leased to others, and
advances to suppliers and construction in progress.
Liabilities:
Current provisions: Are the amounts set aside from the
profit of a business for a known liability, but the specific amount may not be
known. The current provisions are those liabilities that will occur within a
year. The company’s provisions are
generally expected to result in cash outflows. The provisions in Siemens
financial reports are calculated by measuring additions, usage, reversals, translation
differences and accretion expenses and effect of changes in discount rates.
Long-term debt: is the debt the company owes after one year
of the date of issue. The notes of the financial statements in Siemens report
shows the short term debt and the long term debt. The long term debt is made up
of: notes and bonds, loans from bank, other financial indebtedness, and
obligations under finance leases. All of these figures show when they are
maturing til.
Post-employment benefits: Is the amount given from the
company to an employee at the start of retirement. Siemens post-employment
defined benefit plan includes pension benefits and other post-employment
benefits, such as transition benefits. The post-employment benefits are
calculated separately to each major country the Siemens is based and then a
figure of all the smaller countries.
Equity:
Capital Reserve: This account is reserved for long-term
capital investment or projects. It is the profit the company makes that is then
reserved for use in the future when the company needs it.
Retained earnings: is the portion of net earnings that are
not paid out to the shareholders as dividends, but that are retained by the
business to be reinvested in its core business or to pay debt. In the notes of
the financial statements, Siemens shows the amount allocated from net income
into retained earnings.
Treasury shares, at cost: are the shares that a company
keeps at their own cost. The shares may have been a repurchase or buyback from
shareholders. These shares have no voting rights and are not given any
distributions. The company can decide how long they hold these shares, if they
sell them back to the public or even cancel them. Siemens is authorised by
their shareholders to obtain treasury shares of up to 10% of its capital stock
existing at the date of the shareholders’ resolution.
Post to you later,
Katrine
