Before you begin this assignment, it will be helpful if you review McDonald\'sMc

Question

Before you begin this assignment, it will be helpful if you review

McDonald'sMcDonald's

Corporation

20152015

annual report

(https://www.sec.gov/Archives/edgar/data/63908/000006390816000103/mcd-12312015x10k.htm ).

McDonald'sMcDonald's

Corporation is the world's leading global food service retailer with more than 36,000 locations worldwide in more than 100 countries. The corporation operates and franchises

McDonald'sMcDonald's

restaurants, which serve menu items such as the Big Mac, Chicken McNuggets, and McFlurry desserts. In addition,

McDonald'sMcDonald's

also serves McCafe beverages and pastries.Read the requirements

LOADING...

.Requirement 1. Where would

McDonald'sMcDonald's

Corporation report plant assets on its financial statements? How are plant assets reported and what is the value as of December 31,

20152015 ?

(Enter any amounts in millions, to the nearest tenth of a million, X.X, as shown in the financial statements.)

Plant assets are reported at

cost

on the

consolidated statement of income.

The gross value of plant assets at December 31, 2015 is $

470

(in millions).

        More

                       Less

Question Help eText Pages + Calculator + Ask My Instructor + Settings Accessibility + On-Screen Keyboard + About + Before you begin this assignment, it will be helpful if you review McDonalo's Corporation 2015 annual report McDonald's Corporation is the world's leading global food service retailer with more than 36,000 locations worldwide in more than 100 countries. The desserts. In addition, McDonald's also serves McCafe beverages and pastries. Read the reguirements. Requirement 1. Where would McDonald's Corporation report plant assets on its financial statements? How are plant assets reported and what is the consolidated statement of income. 470 n millions). on the Plant assets are reported at cost The gross value of plant assets at December 31, 2015 is S

Explanation / Answer

Accounting standard -10

Accounting for fixed assets

Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business.

Fair market value is the price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties dealing at arm’s length who are fully informed and are not under any compulsion to transact.

Gross book value of a fixed asset is its historical cost or other amount substituted for historical cost in the books of account or financial statements. When this amount is shown net of accumulated depreciation, it is termed as net book value.

Explanation: Fixed assets often comprise a significant portion of the total assets of an enterprise, and therefore are important in the presentation of financial position. Furthermore, the determination of whether an expenditure represents an asset or an expense can have a material effect on an enterprise’s reported results of operations.

For the above question:

McDonald's should report the plan asset in the consolidated financial statements.

McDonald's will report the asset bool value after deducting depreciation

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