10/7/23, 10:18 PM Acccob 2 Reflection Paper 3
Topic: Property, Plant, and Equipment
Reflection/Observation
Property, Plant, and Equipment (PPE) are tangible assets that are physical in nature.
These are also classified as long-term or non-current assets, also known as fixed assets, used by
the business for its daily operations. They are fixed assets with a predetermined useful life and
have a predetermined period of time during which the company's assets will be economically
valuable. Fixed assets also have a salvage value, which is the value left behind after the object
has already reached its end of life. Moreover, depreciation occurs in fixed assets over time and
permits the business to generate income from the asset by deferring the cost of the asset over a
period of years.
The cost of a company's PPE, excluding land, is calculated as the purchase price less
accumulated depreciation, amortization, and depletion, as well as any applicable accrued
impairment loss. The Property and Equipment for Megaworld Corporation takes into account
Buildings & Improvements, Office Furniture, Fixtures, and Equipment, Office Improvements,
Transportation Equipment, Land, and Right-of-use Assets. For the year 2021, Megaworld’s
Property and Equipment amounted to P6,530,887,796. This was computed with the total
Property and Equipment equivalent to P10,728,869,587 less the accumulated depreciation and
amortization, P4,197,981,791. As for the year 2020, their Property and Equipment amounted to
P6,719,600,005 which was calculated through subtracting the accumulated depreciation and
amortization of P3,603,159,960 from the total of P10,322,759,965. Putting into comparison the
said ending balances, it is displayed that there was a P188,712,209 decrease in the year 2021
from the previous year. This may be due to amortization and depreciation which decreases the
value of Property, Plant, and Equipment on the balance sheet because assets lose value over
time as a result of deterioration and their useful life becoming reduced. The Property, Plant, and
Equipment aspect of the balance sheet is essential as it provides insight into the profitability of
a company and also becomes an indicator of growth, efficiency, and responsibility. Hence, this
must be properly monitored at all times as it is also a factor reviewed by potential investors.
Topic: Natural Resources (Wasting Assets)
Reflection/Observation
Natural Resources or wasting assets are tangible items with limited lifespans and
decrease in value overtime. Examples of such assets include oil, gas, timber; and they are
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Topic: Property, Plant, and Equipment
Reflection/Observation
Property, Plant, and Equipment (PPE) are tangible assets that are physical in nature.
These are also classified as long-term or non-current assets, also known as fixed assets, used by
the business for its daily operations. They are fixed assets with a predetermined useful life and
have a predetermined period of time during which the company's assets will be economically
valuable. Fixed assets also have a salvage value, which is the value left behind after the object
has already reached its end of life. Moreover, depreciation occurs in fixed assets over time and
permits the business to generate income from the asset by deferring the cost of the asset over a
period of years.
The cost of a company's PPE, excluding land, is calculated as the purchase price less
accumulated depreciation, amortization, and depletion, as well as any applicable accrued
impairment loss. The Property and Equipment for Megaworld Corporation takes into account
Buildings & Improvements, Office Furniture, Fixtures, and Equipment, Office Improvements,
Transportation Equipment, Land, and Right-of-use Assets. For the year 2021, Megaworld’s
Property and Equipment amounted to P6,530,887,796. This was computed with the total
Property and Equipment equivalent to P10,728,869,587 less the accumulated depreciation and
amortization, P4,197,981,791. As for the year 2020, their Property and Equipment amounted to
P6,719,600,005 which was calculated through subtracting the accumulated depreciation and
amortization of P3,603,159,960 from the total of P10,322,759,965. Putting into comparison the
said ending balances, it is displayed that there was a P188,712,209 decrease in the year 2021
from the previous year. This may be due to amortization and depreciation which decreases the
value of Property, Plant, and Equipment on the balance sheet because assets lose value over
time as a result of deterioration and their useful life becoming reduced. The Property, Plant, and
Equipment aspect of the balance sheet is essential as it provides insight into the profitability of
a company and also becomes an indicator of growth, efficiency, and responsibility. Hence, this
must be properly monitored at all times as it is also a factor reviewed by potential investors.
Topic: Natural Resources (Wasting Assets)
Reflection/Observation
Natural Resources or wasting assets are tangible items with limited lifespans and
decrease in value overtime. Examples of such assets include oil, gas, timber; and they are
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