Intel Corporation: Financial Analysis

The first estimate figure I will choose is the cost of inventory, because Intel Corporation is an information technology company mean the inventory will go out to date in the short time. Intel need to constantly doing the innovation on their product to remain their position in the market, for example Intel processor. Intel needs to keep doing the innovation so the product can fit the market needs like smaller, faster and cheaper system. Intel’s inventory is a combination of raw material, work in progress and finish goods. Raw material is unprocessed items to be used to manufacturing or production process. It also included the Spare parts of the finished goods that will be used as components of a finished product and feedstock for future finished

If the situations or the facts is happen, Intel will evaluated the recoverability by comparing the estimated undiscounted net cash flows associated with the related asset or group of assets over their balance useful lives against recoverability their respective carrying amount of the assets. If an assets found the useful life is shorter than its originally estimated, Intel will increase the rate of the amortization rates to amortize the remaining carrying value over the new useful life. Intel doing the annual impairment in the last quarter of every year for the undecided lived intangible assets or more regularly if indicators of potential impairment exist, to determine whether it is more readily than the carrying value of the assets may not be recoverable. Intel will performed the quantitative impairment test to compare the fair value of the indefinite-lived intangible asset with its carrying value if necessary. Identified intangible assets is the sum of the carrying amounts of all intangible assets, not include goodwill, as at the balance sheet date, net of accumulated amortization and impairment charges. Intel Corp.'s identified intangible assets declined 2013 (5,150 million) to 2014 (4,446 million). Goodwill is the amount paid more the fair value of any asset in the acquire, adjusted for any amortization recognized prior to the adoption of any changes in generally established accounting principles and for any impairment charges, go beyond of the fair value of net assets acquired in one or more business combination transactions. Intel Corp.'s goodwill increased from 2013 (10,513 million) to 2014 (10,861 million). Identified intangible assets and goodwill is the sum of the carrying amounts of all intangible assets,