Quality of Financial reporting Assignment Example | Topics and Well Written Essays - 250 words

Quality of Financial reporting - Assignment Example h of the company depends on various intangible attributes, it becomes quite challenging to examine its real or actual financial performances (Intel Corporation, 2010). Cost of goods sold: The inventory computation process of Intel is focused on the First-In-First-Out method. To comprehend the loss recognition of the written down values of inventories, the company tends to capitalize interests based on the borrowings treating the grants as additional expenditures for the stock (Intel Corporation, 2010). Operating expenses: The depreciation of the tangible assets is calculated in a straight-line method by Intel after capitalizing the interests on borrowings in the net worth of the asset. Impairment costs are charged on goodwill, non-marketable equity investments and other intangible assets which are also reviewed annually to monitor any changes. The acquisitions during research and development process are also identified as an intangible asset liable for amortization costs (Intel Corporation, 2010). Non-operating revenue and expenses: The net interest income generated by the company is computed after deducting the interest expenses incurred during the fiscal year along with other nets. Equity income is also calculated in relation to both its marketable and non-marketable equity investments. The financial statements of the company also depict the income tax changes along with the probable reasons for such alterations increasing its transparency. The financial statements are elaborate on the discontinued functions in relation to various investment activities initiated by the company (Intel Corporation, 2010). Other issues: The consolidated financial statements apparently depict the material alterations caused in relation to outstanding shares of Intel over a given period of time. The cash flow statement as well as the income statement also depicts the computation process of operating earnings before taxation and after taxation charges following the guidelines of