Accounting Category: Assets

Accounting Articles

September 6, 2014

In the first two parts of this article series, we discussed general capital lease accounting. For this final article, we’ll take a brief look at a special kind of transaction called a sale-leaseback.

August 31, 2014

In the first part of this article series about capital lease accounting, we discussed accounting for the asset and related liability from the perspective of the lessee. Now we’ll turn to other side of the transaction to look at accounting from the lessor’s perspective.

August 24, 2014

In this three-part article series, we’ll discuss the accounting treatment for various aspects of a leasing arrangement. This first part will cover capital lease accounting by the lessee (the party that takes possession of an asset in exchange for monthly lease payments).

August 10, 2014

Some costs are easy to identify as those which can be capitalized as part of inventory costs because they are clearly related to the manufacturing process. This is the case with direct costs and some indirect costs. Other costs are not as easy to analyze from the standpoint of inventory capitalization. In this article we will look at such costs and whether they should be included in inventory costs.

July 24, 2014

Fixed assets aren’t always ready for intended use as soon as they are purchased. There may be some activities which need to be completed before assets become ready for use. Can fixed assets be depreciated before they are ready for use? Can fixed assets go without being depreciation while they are not in use after pre-operating periods have ended? These questions will be answered in this article.

July 16, 2014

A sale of an asset for cash is generally easy to account for. A gain or loss is recorded for the difference between the asset’s book value and the cash received. What happens when an asset is exchanged for a similar asset? In this article we’ll cover the accounting treatment for such nonmonetary exchanges.

July 8, 2014

Derivative accounting is a complex subject filled with complicated transactions, financial statement presentations, and disclosures. In this article, we’ll scratch the surface of the derivative field and hedging activities, which are integrally related to derivatives.

July 1, 2014

We have previously discussed various methods of estimating bad debt expense, including percentage of sales and percentage of accounts receivable. In this article, we expand on the percentage of accounts receivable method by incorporating accounts receivable aging.

June 16, 2014

Owning a share of stock in a company might earn you a few dollars, but you don’t get to do a whole lot of decision-making as such a small investor. Corporations, on the other hand, invest in equity securities on a much larger scale. In this article, we’ll look at three different methods of accounting for stock investments.

June 9, 2014

What would happen to a corporation if the long-term CEO were to die? Some businesses carry life insurance policies for just such an event because of potential operation disruptions. In this article we’ll discuss briefly the journal entries for business-owned life insurance (BOLI) policies.

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