Basic Accounting Equation

The basic report equation upon which the concluding accounts atomic number 18 prepare encompasses the following Assets negative Liabilities = possession Interest The correspondence canvas is the key financial report that portrays the accounting equation, which will be utilized to write in code the accounting equation for the companies at hand. invoice equation in McDonalds Annual deal (2007) Assets Property, plant and equipment $20,984. 70 star one million million million million million on-going Assets $ 3,581. 90 million Other Assets $ 4,825. 10 million Total Assets $29,391. 70 million Liabilities Non- reliable Liabilities (note 1) $ 9,613.40 million Current Liabilities $ 4,498. 50 million Total Liabilities $14,111. 90 million will power Interest $15,279. 80 million remark ownership pertain is re infixed by total shareholders uprightness in the Balance Sheet. Note 1 Computation of Non-Current Liabilities long-term Debt $7,310. 0 million Other semipermanent Liabi lities $1,342. 5 million Deferred Taxation $ 960. 9 million Non-Current Liabilities $9,613. 4 million Accounting Equation in Triarc Companies Incorporation (2007) Assets Non-Current Assets $1,284,313,000 Current Assets $ 170,254,000Total Assets $1,454,567,000 Liabilities Non-Current Liabilities (see note 2) $ 798,530,000 Current Liabilities $ 207,163,000 Total Liabilities $1,005,693,000 Ownership Interest $448,874,000 Note ownership sideline is represented by total stockholders equity in the Balance Sheet. Note 2 Computation of Non-Current Liabilities Long-Term Debt $711,531,000 Deferred Income $ 10,861,000 Minority interest in consolidated subsidiaries $ 958,000 Other Liabilities $ 75,180,000 Non-Current Liabilities $798,530,000Under both organisations the same accounting equation is utilise and the same components taken. This unvariedity is grievous in accounting in order to picture comparability. In addition with the aid of such(prenominal) accounting equation a uniform str ucture is given to the Balance Sheet, which is an important specialty for pertinent stakeholders to assess the financial position and stability of the organization. As one can note the assets section is sort out between current and non-current assets, while the liabilities are divided between current and non-current liabilities.The tax write-off between the two will results in the ownership interest. This basically comprises the equity cracking of the company together with capital and revenue/capital reserves. Such features are present both for McDonalds familiarity and Triarc Companies Incorporation. In addition such features will too be present in the majority of limited liability companies set across the globe. The Balance Sheet is the main long suit that one can utilize to get a line the assets, liabilities and ownership interest of the companies.The additional notes in the financial statements serve as contingent specification on certain assets and liability elemen ts. However, the accounting equation being generic in its nature does not adopt that one enters into such details. In this wish the Balance Sheet was the main medium utilised to put in institutionalise the accounting equation for McDonalds Corporation and Triarc Companies Incorporation. Reference Weetman P. (2003). Financial and Management Accounting. trey Edition. New York Prentice Hall.