What do the “transfer” items in the notes to the financial statements relate to? (in the capital assets section; Plant, property & equipment and Intangible assets)
The "transfer" items in the notes to the financial statements typically relate to the movement or reclassification of capital assets in the sections of Plant, Property & Equipment (PPE) and Intangible Assets. They provide additional details about any significant changes or transfers that have occurred during the reporting period.
To understand these transfer items more thoroughly, you can follow these steps:
1. Obtain the financial statements: Access the company's annual report, which includes the financial statements, such as the balance sheet and notes to the financial statements.
2. Locate the section on Capital Assets: Find the section that provides information about the company's capital assets, particularly the Plant, Property & Equipment (PPE) and Intangible Assets.
3. Read the notes: Scroll through the notes to the financial statements, typically located towards the end of the report. Look for specific notes related to capital assets, PPE, and intangible assets.
4. Identify transfer items: Within the relevant notes, search for sections that discuss transfers or reclassifications of capital assets. These sections may provide explanations about the movement of assets from one category to another or from one subsidiary to another.
5. Analyze the details: Pay attention to the explanations provided in the notes. The company might detail the reasons for transfer, such as changes in business strategy, acquisitions, or disposals of assets. The notes may also provide insights into the impact on financial statements, such as the carrying amount, depreciation, or amortization related to transferred assets.
By following these steps, you can gain a comprehensive understanding of the "transfer" items in the notes to the financial statements and their relevance to the capital assets sections of Plant, Property & Equipment (PPE) and Intangible Assets.