Académique Documents
Professionnel Documents
Culture Documents
(PGDM- 2018-20)
Sriranga Vishnu
Faculty (F&A Area)
Asset Reporting
• Tangible Assets-
– Building, Plant, Machinery, Furniture, etc.
– Depreciate over a period of time
• Intangible Assets-
– Non-physical entities – Patents, Software, Goodwill, etc.
– Amortized over a period
• Natural Resources-
– Land, Coal, Oil, etc.
– Deplete with passage of time (except land)
Accounting for Land
• Methods of Depreciation-
– Straight Line
– Declining Balance (Written Down method)
– Sum of years' digit method
– Units of Production method
Methods of Depreciation
• Straight Line Method– Net acquisition cost is expensed
over useful life of asset in equal amounts
– Calculation is relatively simple
– Useful for assets that depreciate mainly with time