Fixed Assets

Why Land Is Not Depreciated?

In accounting, when one speaks of assets and valuations, the unique case of land always stands out.  Land remains steadfast, unlike its counterparts—machinery, buildings, or vehicles, which bear the burden of time, wear, and tear.  This immutable quality of land, where it doesn’t deteriorate with time or usage, renders it with what we term as […]

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Is Depreciation Part of Operating Expenses? (Yes, But Not All the Cases)

IAS 16 Property, Plant, and Equipment cover the accounting treatment for fixed assets. These assets include resources used by companies in the long term. Usually, companies acquire these assets to help support their operations. This process requires substantial capital investments in various resources. For the company, the process results in a cost or expense. However,

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Net Book Value Of Non-Current Assets: (Explanation, Calculation, Example)

A business entity is a for-profit organization that performs different operations to earn profit. For effective operations, different resources are required by the company. For instance, money is a resource that a company uses to acquire supplies, raw materials, machinery, patents, etc., to maintain the continuity of business operations. The equipment, raw material, finished goods,

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Fixed Assets In The Balance Sheet: Classification, Recognition, Measurement

A company’s balance sheet represents its financial health and position of it at a given time. Generally, a balance sheet is presently based on the accounting equation. It represents the assets owned by a business entity, liabilities owed, and the business’s equity. However, the classified balance sheet focuses on representing the assets and liabilities in

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Account for Repair and Maintenance Expense – Overview, Journal Entries, and Example

Overview During the ordinary course of business, there are certain routine expenses that are considered unavoidable. They are part and parcel of the operations of the company, and therefore, need to be paid by the company in order to ensure that there are no bottlenecks that hinder the performance of the company. Repairs and maintenance

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