Question

Use Family Dollar company, use information you find in a company’s Form 10-K from the year 2020.

Locate the Property, Plant & Equipment (PP&E) line item(s) in the Financial Statements; list the page number you find PP&E on AND the name of the financial statement where PP&E is found. Describe the account title/line item name(s) that this company uses for its PP&E (hint: it is usually not listed as “Property, Plant & Equipment” but some synonym or similar categories.) Also list the page number of the Form 10-K that contains the PP&E note(s) to the financial statements. This note will be found in the several pages immediately following the financial statements.

List the various PP&E asset types this company has.

What depreciation method(s) the company use.

Describe the disclosures that the company makes about the accounting for its PP&E.

Answer 1

1.) PPE line items is found on page no. 44 in Consolidated balance sheet.

2.) Account title is 'Property, Plant amd equipment, net of accumulated depreciation'.

3.) PPE notes found on page no. 48, 52

4.) List of PPE :-

• Land
• Buildings
• Furniture, fixture and equipment
• Construction in progress

5.) Depreciation method - Straight line method

6.) Company discloses the life of depreciable assets, 39 to 40 years in case of buildings and 3 to 15 years in case of Furniture, fixture and equipment.

Cost incurred for software development are capitalised and amortize over three years.

Depreciation expense was $581.9 million in February 1, 2020.