As far as intangible assets of the firm are concerned these are recorded in accordance with AASB (Australian Accounting Standard Board) 138 Intangible assets criterion. The difference between considerations transferred and the fair value of certain netting assets is then recorded in the income statement. The measurement of business Goodwill is taken at cost being the surplus of the charge of business mixture that is over and excess of the net fair value of certain assets possessed by the acquirer in the form of liabilities and contingent liabilities. Following AASB 16 Property, Plant and Equipment (PPE) is recorded by taking difference between cost and accumulated depreciation. Straight line depreciation method is not applied by the company in order to depreciate its assets.
Revaluation model for the representation of PPE is abandoned by the company few years back. Since 2009 Boral Limited has chosen to adopt cost model for the reporting of PPE and as a consequence of adopting a cost model fluctuations in the year to year value of PPE are not reflected in the annual reports of the company. So, to increase the profitability of the company in the eyes of potential stake holders, Boral Limited is found to depreciate value of its assets over a comparatively longer period which results in the decreased value of depreciation expenses.
A 6% lower than previous year’s revenue was reported by Boral limited i.e. $4.9b of sales for the year ended in mid month of 2009. The decrease in the revenue reflects a very significant deterioration in the housing markets of United States and Australia. Positive price gains contributed to partially offset Volume reductions across most of the businesses. Australian revenues decreased from $4.1b to 5%. Similarly reported Revenues from the United States were decreased about 33% to a level of US$406m. It equals the amount of 19% percent decline in the revenue when converted in to Australian dollars. But the firm reports an increase in revenue from Asian markets of about by 15% to A$219m in its value.