Identifying Assets, Liabilities and Equity

All Leisure Group

Currency is £

The following explanations for each asset, liability and equity are based on what I could locate in the financial statements and my interpretation of what I believe they are referring to.

Assets (non-current assets and current assets)

Non-current assets- What is this?

Noncurrent assets are assets where the company allocates the cost of the asset over the number of years for which the asset will be in use, instead of allocating the entire cost to the accounting year in which the asset was purchased.

1.    Intangible assets                                                                   £21,324,000

(An intangible asset is a non-physical asset having a useful life greater than one year. This amount above relates to the acquisition of Page & Moy Travel Group, computer software and trademarks)

2.    Property, ships, plant and equipment                                £39,657,000

(These include items such as the acquisition of Page & Moy Travel Group Limited, Land costs and revaluation costs)

Current assets- What is this?

Current assets are assets that the company can expect to convert to cash within one year in the normal course of business.

3.    Inventories                                                                             £2,312,000

(This relates to engineering spares, fuels and lubricants)                       

Liabilities (non-current liabilities and current liabilities)

Non-current Liabilities- What is this?

Non-current liabilities are debts that the company do not have to pay within one year from the date of the balance sheet.

1.    Borrowings                                                                           £4,622,000

(This relates to a loan secured against Voyager, which is one of the ships with the company)

2.    Deferred tax liabilities                                                          £2,299,000

(This refers to assets recognised by the group and movements thereon during the current and prior reporting period)

Current Liabilities- what is this?

Current liabilities are debts that the company are expected to pay within one year from the date on the balance sheet.

3.    Trade and other payables                                                    £57,321,000

(This is referring to amounts outstanding for trade purchases and ongoing costs)

Equity

Equity is the remaining interest in the assets of the entity after all the liabilities have been deducted.

1.    Share Capital                                                                         £617,000

(This relates to ordinary shares that are recognised as equity in share capital)

2.    Revaluation reserve                                                             £13,346,000

(This relates to a revaluation that was performed on one of the company’s assets)

3.    Retained Earnings                                                                £5,239,000

(This is money that is accumulated over time from business operations)

To be honest, I found myself researching a lot of the definitions in the balance sheet to get my head around what they were referring to in the company!
Hope I'm not the only one who feels as though I am learning a foreign language!