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...
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...
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 recognizes in the balance sheet as...
Definition: The impairment test is the testing procedures that perform by the companies on the assets that they have to find out if the assets are impaired that make the carrying value of assets in the reporting date less than the recoverable value of assets. For...
Introduction: In the accounting world, the asset is defined as an owned resource from which future economic benefits are expected. On the balance sheet of any organization, be it a not-for-profit or for-profit, the carrying amount of all assets is reported. All such...
Accounting depreciation Accounting depreciation is the use and tear and wears of tangible assets allocated by the company over the useful life of assets generally governed by corporate laws and accounting standards. The recognition of accounting depreciation is driven...
