Meaning A tenant should recognize restoration cost as part of the right of use asset while incurring obligation for them. Based on the circumstances, this shall be decided that it may start at the commencement date or be a consequence of having used the asset for a particular period. The obligation is covered under IAS […]
Accounting for restoration costs (Journal Entries and Explanation) Read More »
Depreciation IAS 16 defines depreciation as ‘the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount equals the purchase cost of the asset less the salvage value or other amount like the revaluation amount of the asset. Depreciation amounts to distributing the cost of assets to the income
Is Depreciation Expense An Implicit Cost? (Explained) Read More »
Depreciation IAS 16 defines depreciation as the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount equals the purchase cost of the asset less the salvage value or other amount like the revaluation amount of the asset. Depreciation amounts to distributing the cost of assets to the income
Is Depreciation Expenses an Overhead Cost? (Explanation) Read More »
Depreciation IAS 16 defines depreciation as the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount equals the purchase cost of the asset less the salvage value or other amount like the revaluation amount of the asset. Depreciation amounts to distributing the cost of assets to the income
Is Depreciation Expense an Operating Expense? (Explanation) Read More »
Depreciation Depreciation is a non-cash operating activity resulting from wear and tear in the use of assets. Still, it has been quantified by using accounting principles and assumptions in line with the enterprise’s own accounting policies. The amount of depreciation needs to be calculated each year and is debited to the income statement like any
Is Depreciation Expenses a Direct or Indirect Cost? (Explanation) Read More »
Depreciation IAS 16 defines depreciation as the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount equals the purchase cost of the asset less the salvage value or other amount like the revaluation amount of the asset. Depreciation amounts to distributing the cost of assets to the income
Is Depreciation Expenses a Fixed or Variable Cost? (Explained) Read More »
What Are the Fixed Assets? Fixed assets are generally referred to as the property, plant, and equipment that own and use by the company to support its daily business operations. They do not help for the purpose of trading. These assets could refer to the land that the company owns and use to build the
What Is the Difference Between Fixed Asset Write-off and Disposal? Read More »
Meaning: Fixed assets are long-term investments in the operation of an entity. Long-term investments in terms of accounting conventions mean the asset whose useful life is more than 12 months. These assets are illiquid in nature, unlike current assets that can be easily converted into cash in twelve months from the accounting period. Fixed assets
What is Fixed Assets Addition? How to Account For It Read More »
Overview: Biological assets are assets that are living in nature. It includes trees, animals, and nowadays cannabis too, as it has been made legal. The company’s management breaks down the assets side of the balance sheet and classifies them by type and attributing a value to them. Biological assets are dealt with in International Accounting
What are Biological Assets? Recognition and Measurement Read More »
Overview: Fixed assets management is an effective process of tracking and maintaining the organization’s physical assets to prevent losses. It enables the organization to track equipment, vehicles, machinery, buildings, assess their condition, and keep them in good working order. The process of managing the assets gets complicated, along with the size of the organization. Small
6 Tips Help You To Manage Your Company’s Fixed Assets Effectively Read More »
