Fixed Assets

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 the financial health and position of a company at a given time. Most commonly, a balance sheet is 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 …

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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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Building Improvement: Accounting, Journal entries, Depreciation

Overview: Building Improvement tends to be a major expense for organizations, as well as for private investors because they require a significant amount of finance to be invested in a line with the expense. In this regard, it is also important to properly categorize building, and building improvements so that there is clarity regarding the …

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Land Improvements: Depreciation, and How To Account For It

Fixed assets represent long-term assets used by companies and businesses in the generation of revenues and profits. There are several types of fixed assets that companies use, including property, plant, and equipment. Since most of these assets require high-value investments, accounting standards require companies not to charge the cost of these assets in a single …

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Impairment of Assets – What Is It and What Causes of Impairment?

When a company or business acquires an asset, it records it in its financial statements at cost. After every accounting period, the company must also calculate and record a depreciation or amortization charge related to the asset. Sometimes, however, companies must recognize an impairment against the asset under various circumstances as well. What is the …

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The impairment test for goodwill – How to perform an impairment test?

What is goodwill? Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually recognized and separately identified. It is recorded and recognized in the balance sheet as long-term assets when a company purchases another company and owns more than 50% of shares. How …

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