Some of the most popular fixed assets and intangible assets include among others, Buildings, land, PPE (property, plant, and equipment), machinery, and equipment to only name a few. Some of the more well-known intangible assets which come to mind include patents, copyrights, goodwill, and trademarks. Acquisition of fixed assets would be recorded at the historical cost (obtained price) plus any other costs associated with bringing the asset into service such as shipping or freight costs, sales tax, installation fees, and any repair costs to get the asset to revenue generating status which are then allocated through depreciation associated with the fixed assets. When the company chooses to dispose of the fixed asset whether through selling the asset or scrapping, the organization must first determine if there is to be a gain or a loss on the disposal by calculating the accumulated depreciation less the book value (Wiley 2002).
Financial Accounting Standard 142 which supersedes APB 17 addresses how intangible assets acquired individually or with a group of other assets absent of acquisition in a business combination are to be recorded. The acquisition of an intangible asset whether acquired individually or with a group of assets is to be recorded at its fair value and accounted based on its useful life to the reporting entity. According to the Statement of Financial Accounting Standards no. 142, “An intangible asset with an indefinite useful life is not amortized and an intangible asset with a finite useful life is amortized. The amount of an intangible asset to be amortized shall be the amount initially assigned to the asset less any residual value” (FASB 2001).
Pre-Written Pages: 1
*Please note down the Number of Pages & Order Topic before place the Pre-Written Order
*Please note that pre-written orders are previously submitted orders by students and tutors. They are not plagiarism-free and should only be used for reference or better understanding of the topic.
If you require newly written order then please select custom order. We guarantee that the completed custom order will be free of plagiarism.