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IAS 16 (of the IFRS) provides for two acceptable alternative approaches to accounting for fixed assets. The first of these is the cost model, under which...
There is a very easy way to tell if you have been assigning appropriate lives to fixed asset in your company. Take the existing file and...
Analyzing key phrases keyed in the search tab of AFT and comments left in the articles so far, I found tens of essential questions around fixed...
The regulators do not permit a business organized as a C-corporation (in the United States) to use cash basis accounting. Instead, these companies must use accrual...
Depreciation is designed to spread an asset’s cost over its entire useful service life. Its service life is the period over which it is worn out...
Asset impairment occurs when the fair value of an asset declines below the amount at which it is recorded on the books (its carrying amount). Impairment...
Thursday [3-Dec-2009], IRS has just issued 2010 optional standard mileage rates for calculating the deductible costs of operating an automobile for business, charitable, medical or moving...
The objective of financial statements is to provide information for economic decisions. A complete set of financial statements comprises a balance sheet, income statement, statement of...
This post contains a list of the journal entries that most used by accountant and is likely to deal with. There are a plethora of possible transactions...
CAPITAL – This is a very broad term with its roots in economic theory that refers to money and other assets that are invested in a...
This post prescribes rules regarding the recognition, measurement, and disclosures relating to property, plant, and equipment (often referred to as fixed assets) that would enable users...
contingent asset – A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or...
The basic theory of depreciation accounting is unarguable: The amount of capital a business invests in a fixed asset, less its estimated future residual (salvage) value...