Chapter 11, Problem 11.15DMP

Real World Case 11–15

Depreciation and depletion method; asset impairment; subsequent expenditures; Chevron

• LO11–2, LO11–3, LO11–8, LO11–9

Real World Financials

EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet.

Required:

1. Access EDGAR on the Internet. The web address is www.sec.gov.

2. Search for Chevron Corporation. Access the 10-K filing for most recent fiscal year. Search or scroll to find the financial statements and related notes.

3. Answer the following questions related to the company’s property, plant, and equipment and intangible assets:

a. Describe the company’s depreciation and depletion policies.

b. Describe the company’s policy for subsequent expenditures made for plant and equipment.