the table above, the most left figure of the equity methodstocks is much bigger than the last year's one. This is simply because the process of separation.
And also, during the process of separation, some parts of Assets and Liabilities are transferred to the newly making company. The interest thing which we have to focus is that how the main company and newly making company evaluate their as
0. The reason why we selected Korean Air
We researched companies which we can use our knowledge from this class. In the class, we studied for Airline companies, Singapore and Delta airline. We concluded after some discussion that we could enrich our valuation skills and basic knowledge of finance and accounting by analyzing lease agreement and depreciation method when we select Airline companies
the company’ focus on diversifying its distribution channels is proceeding smoothly. Street shops that accounted for 38% of the company’ sales in 2006 are projected to contribute 48% of sales in 2010F and 50% in 2011F. We view the company’ consistent growth strategy in a positive light and expect it to drive a valuation re-rating in the mid to long term. Cash & cash equivalents to rise shar
the revenue when the most of profit has earned (Cost recovery method). We recognize the other profit until completing the full course of earning and having high profit.
Inventories
We use the weighted average inventory method to evaluate the estimated acquisition cost and calculate the quantity and amount according to the year-round method. However, if the property stock market price is lower t
the main accounting policies of KAL. Choose one interesting/doubtful accounting policy. Then, comment on the chosen accounting policy
I. Main accounting policies
We could find the main accounting policies of KAL by looking into its footnotes. We investigated its accounting policy for revenue recognition, allowance for doubtful debts, inventory valuation, and depreciation method.
1. Reve