资产是财务报表资产负债表中分析的最重要的方面，从而帮助用户计算流动比率和速动比率以及负债率。它有助于确定公司是否有能力通过可用资产支付其短期和当前债务。公司使用成本模型来确定财产、设备和工厂的价值(Berk & DeMarzo, 2017)。成本模型和重估模型都是在企业需要选择这两种成本模型中的任何一种作为会计政策的规则下进行的，并且将该政策应用于整个物业、厂房和设备是非常必要的。
成本被认为是一个历史数字，并不意味着要修改。另一方面，企业需要计算资产的折旧。选择最合适的折旧方法是采用直线法，因为直线法被认为是做出有效决策和确定政策的重要因素(Britton & Waterston, 2013)。
Investment in any organization is considered as a vital step which is required a thorough analysis of the financial statement. It helps the user to get a clear and precise idea about the key business risk which is obtained from the financial ratio (Weil, 2017). In the given case of Joe Doyle, the company Woolworth asset and liability analysis will help to throw light on the key areas which include the cost valuation model utilized by the company. It reflects the asset and liability and the intangible assets and thus help the client to take an effective decision regarding the investment.
Analysis Cost model and revaluation model
The asset is the most important aspect which is analysed in the financial report balance sheet and thus helps the user to calculate the current ratio and quick ratio along with debt ratio. It helps to determine the company ability pay its short term and current obligation by the available asset. The company uses a cost model to determine the value of the property, equipment, and plants (Berk & DeMarzo, 2017). The cost model and revaluation model are under the rules that a business firm needs to select either of the two cost models as its accounting policy, and it is essential to put the policy on the entire property, plant, and equipment.
When a business implements cost, the property and plant, equipment is levied at its cost less following accumulated depreciation and impairment losses.
Carrying Amount (cost model) = Cost – Accumulated Depreciation – Accumulated impairment losses
The cost is considered to be a historical figure and does not imply to modify. On the other hand, the business firms required to calculate the depreciation on the asset. The selection of the most suitable depreciation method is implemented as the straight line method is considered as an important matter in taking an effective decision and the firm policy (Britton & Waterston, 2013).