What is the accounting of assets?

ASPPITTATION focuses on recording and reporting financial information regarding the financial conclusion of the company. The balance sheet reports all business assets. Accountants must report this information precisely because the assets represent part of the total wealth or economic improvement in the company. The consulting assets are divided in two groups: current and fixed. Each group contains specific items with values ​​set by the generally received accounting principles (GAAP). These items include cash and cash equivalents, supplies, account receivables and short -term tradable securities. The accounting accounting value these items at the current market value because this information is easily available and the items can be quickly purchased or sell on the open market. Current assets can also introduce items used by a company to generate sales from Normal Business Operations. The second group of assets includes fixed assets of the company. Companies can have severalIK fixed assets depending on the size and type of business operation. According to the GAAP instructions, the accounting of assets must divide fixed assets according to one of three groups: intangible, tangible or investment.

intangible assets include good will, patents, copyright and trademarks. These items are awarded using an accounting measurement specified by GAAP. The business industry or sector may enable companies to appreciate differently, depending on the type if it is an intangible asset. Another group of fixed assets in the balance sheet is tangible assets.

tangible assets include traditional objects or land, buildings, machines, vehicles, accessories and computer equipment. Country of assets usually records these items at historical costs and depreciates this value for the period of time. GAAP usually allows companies to choose a depreciation method in accordance with the type of asset indicatedEven several business sectors or sectors. When reporting these fixed assets for tax purposes, the accounting must use the modified system of accelerated cost recovery system (MACR) to report depreciation on annual tax submissions. The accounting of the assets must leave two separate depreciation when depreciating fixed assets.

The final group of fixed assets is the investment that the company holds. These items are classified as held adolescence, available for sale and long -term investment. ASSIGNIATION ASSIGNMENT reports these items for the current market value. This means that the accountant must examine the investment market to see how many of these items can be sold at current market rates. Adjustments are then made on these solid assets to increase or reduce the book value of the asset.