A quick recap of our agenda is as follows:
- Record the historical profit and loss accounts and balance sheet
- Calculate the historical growth drivers
- Project the growth drivers for the profit and loss accounts and balance sheet
- Build up the projected profit and loss accounts and the balance sheet
- Prepare the asset and depreciation schedule
- Prepare the debt schedule
- Prepare the cash flow statement
- Ratio analysis
- DCF valuation
- Other valuations
- Scenario analysis
Our subject matter is referred to as long-term assets, fixed assets, and property plant and equipment. An asset is a long-term asset that the company will derive economic value from by using it for over a period of more than one year. This period is called the useful life of the asset. It would be unfair to charge the entire cost of such an asset in the period in which it was acquired; instead, the cost should...