Answered You can hire a professional tutor to get the answer.
Hi, I am looking for someone to write an article on accounting for investments under u.s gaap Paper must be at least 1000 words. Please, no plagiarized work!
Hi, I am looking for someone to write an article on accounting for investments under u.s gaap Paper must be at least 1000 words. Please, no plagiarized work! Investments are categorized as either long-term or short -term investments. Current investments are. Other investments that are not current are categorized as long-term investments (Epstein, Nach & Bragg, 2009). The U.S GAAP provides various standards for accounting for investments.
The objective of U.S accounting standards that deal with property plant and equipment is to recommend treatment of property. plant and equipment to enable users of financial information to have proper details regarding the enterprises' investment in property, plant, and equipment and changes in such investments. The main issues in accounting for PPE are recognition of the assets, determination of the assets carrying amounts, the appropriate depreciation charges and impairment losses that are supposed to be recognized in relation to these assets (Thornton, 2013).
According to U.S GAAP, Property plant and equipment include tangible items that are: 1) held for the purpose of production of goods and services, rental to others, or for administrative needs, 2) anticipated to be used for more than one period and, 3) It is probable that the future economic benefits related with the items will flow to the enterprise and 4) the cost of the PPE can be measured reliably (Thornton, 2013).
The cost of an item of PPE is the cash amount or its equivalent, paid in acquiring the asset, commonly adjusted for amortization and other allocations after the acquisition. If an enterprise recognizes a liability for the retirement of an asset obligation, the carrying amount of the long-lived asset should be increased by an amount equivalent to the liability (Thornton, 2013).
Routine maintenance costs should be expensed as they are incurred. Major inspection and repair costs can be expensed as incurred or capitalized and amortized to the subsequent major inspection or repair. .
