نوامبر 2021

Gearing: Definition, How Its Measured, and Example

However, this also increases the financial risk, as the company must meet its debt obligations irrespective of its financial performance. Conversely, decreasing debt moves the company towards a more stable, but potentially less lucrative, financial structure. A higher gearing ratio indicates that a company has a higher degree of financial leverage. It’s more susceptible to […]

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Asset Impairment and Disposal

However, all else equal, with the asset still in productive use, GAAP operating profits will increase because no more depreciation expense will be recorded. When the fully depreciated asset is eventually disposed of, the accumulated depreciation account is debited and the asset account is credited in the amount of its original cost. An asset’s depreciable

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