Fixed assetsA company's assets are

Fixed assets

A company's assets are usually divided into current assets like cash and stock or inventory, which will he used or converted into cash in less than a year, and fixed assets such as buildings and equipment, which will continue to be used by the business for many years. But fixed assets wear out - become unusable, or become obsolete - out of date, and eventually have little or no value. Consequently fixed assets are depreciated: their value on a balance sheet is reduced each year by a charge against profits on the profit and loss account. In other words, part of the cost of the asset is deducted from the profits each year.

The accounting technique of depreciation makes it unnecessary to charge the whole cost of a fixed asset against profits in the year it is purchased. Instead it can be charged during all the years it is used. This is an example of the matching principle. (See Unit 8)

BrE: fixed assets; AmE: property, plant and equipment

Valuation

Assets such as buildings, machinery and vehicles are grouped together under fixed assets. Land is usually not depreciated because it tends to appreciate, or gain in value. British companies occasionally revalue - calculate a new value for - appreciating fixed assets like land and buildings in their balance sheets. The revaluation is at either current replacement cost - how much it would cost to buy new ones, or at net realizable value (NRV) - how much they could be sold for. This is not allowed in the USA. Apart from this exception, appreciation is only recorded in countries that use inflation accounting systems. (See Unit 7)

c

Companies in countries which use historical cost accounting - recording only the original purchase price of assets - do not usually record an estimated market value - the price at which something could be sold today. The conservatism and objectivity principles support this; and where the company is a going concern, the market value of fixed assets is not important. (See Units 7 and 8)

Depreciation systems



The most common system of depreciation for fixed assets is the straight-line method, which means charging equal annual amounts against profit during the lifetime of the asset (e.g. deducting 10% of the cost of an asset's value from profits every year for 10 years). Many continental European countries allow accelerated depreciation: businesses can deduct the whole cost of an asset in a short time. Accelerated depreciation allowances are an incentive to investment: a way to encourage it. For example, if a company deducts the entire cost of an asset in a single year, it reduces its profits, and therefore the amount of tax it has to pay. Consequently new assets, including huge buildings, can be valued at zero on balance sheets. In Britain, this would not be considered a true and fair view of the company's assets.

"Lets see, it says here that you've had a lot of corporate accounting experience

Результаты (русский) 1:

Основные средстваАктивы компании обычно делятся на текущие активы, как наличные деньги и акции или инвентаризации, который он используется или преобразованы в наличные деньги в менее чем через год и основные средства, такие как здания и оборудование, которое будет по-прежнему использоваться бизнес для многих лет. Но основные средства изнашиваются - становятся непригодными для использования, или становятся устаревшими - устарели и в конечном итоге имеют небольшое или никакое значения. Поэтому основные средства амортизируются: их значение на балансе уменьшается каждый год за счет прибыли на счет прибылей и убытков. Другими словами часть стоимости актива вычитаются из прибыли каждый год.Методика бухгалтерского учета амортизации делает его ненужным для зарядки всей стоимости основного средства против прибыли в год он приобрел. Вместо этого он может быть предъявлено обвинение за все годы он используется. Это пример соответствующего принципа. (См. блок 8)BrE: основные средства; AmE: имущество, завод и оборудованиеОценкаAssets such as buildings, machinery and vehicles are grouped together under fixed assets. Land is usually not depreciated because it tends to appreciate, or gain in value. British companies occasionally revalue - calculate a new value for - appreciating fixed assets like land and buildings in their balance sheets. The revaluation is at either current replacement cost - how much it would cost to buy new ones, or at net realizable value (NRV) - how much they could be sold for. This is not allowed in the USA. Apart from this exception, appreciation is only recorded in countries that use inflation accounting systems. (See Unit 7)cCompanies in countries which use historical cost accounting - recording only the original purchase price of assets - do not usually record an estimated market value - the price at which something could be sold today. The conservatism and objectivity principles support this; and where the company is a going concern, the market value of fixed assets is not important. (See Units 7 and 8)Depreciation systemsThe most common system of depreciation for fixed assets is the straight-line method, which means charging equal annual amounts against profit during the lifetime of the asset (e.g. deducting 10% of the cost of an asset's value from profits every year for 10 years). Many continental European countries allow accelerated depreciation: businesses can deduct the whole cost of an asset in a short time. Accelerated depreciation allowances are an incentive to investment: a way to encourage it. For example, if a company deducts the entire cost of an asset in a single year, it reduces its profits, and therefore the amount of tax it has to pay. Consequently new assets, including huge buildings, can be valued at zero on balance sheets. In Britain, this would not be considered a true and fair view of the company's assets."Lets see, it says here that you've had a lot of corporate accounting experience